# Insurance for property management, WEG administration and rental management in Germany

> As a property manager you handle other people's money and make decisions about other people's buildings. Miss a warranty deadline, carry out a resolution the wrong way or let the buildings insurance lapse, and the owners will claim damages from you. That is why professional indemnity is compulsory for residential property managers in Germany. This page shows what else makes sense.

Quelle/Source: https://www.nammert.com/en/business-insurance-property-management.php  
Updated: 2026-09-18

## Is the minimum cover of 500,000 euros enough?

It is enough for your licence, but in practice often not. A single case, such as a warranty deadline missed on a new roof or a refurbishment contract awarded the wrong way, can run to six figures on a large estate. Once you manage a few hundred units, we recommend 1 million euros per claim or more. The extra premium is usually small.

## At a glance

- **Compulsory:** Professional indemnity for financial loss (Vermögensschadenhaftpflicht) for residential property managers under § 34c GewO, the German trade licence for estate agents and property managers, and § 15 MaBV. This covers administrators of owners' associations (WEG) and managers of rented homes: at least 500,000 euros per claim and 1 million euros a year. If you only manage commercial property, the rule does not apply
- **Biggest risk:** Financial losses for the owners caused by missed deadlines, resolutions carried out incorrectly and mistakes in the service charge accounts
- **Basic cover from:** about 120 to 250 euros a year for the compulsory professional indemnity of a small manager with 500,000 euros of cover
- **Statutory accident insurer:** VBG, the Berufsgenossenschaft responsible for administration and services; membership is compulsory for every management firm with employees, including caretakers you employ yourself
- **Often forgotten:** Fidelity cover: if an employee embezzles the owners' service charge money, professional indemnity usually does not pay
- **WZ 2025 / NACE:** 68.32 Verwaltung von Grundstücken, Gebäuden und Wohnungen für Dritte

## What goes wrong in this trade

- **Deadlines and warranties:** Defects in the common parts are reported too late and the builder's warranty has expired. The owners then ask you, the manager, to pay for the repairs.
- **Resolutions handled wrongly:** A contract is awarded without a valid resolution, an overpriced quote is accepted, a special levy is split incorrectly. Since the 2020 reform of the German Condominium Act (WEG), managers have more powers and more responsibility.
- **The building is not insured:** The buildings insurance has been cancelled or the sum insured is too low, and then the water damage happens. The gap comes back to the manager.
- **Other people's money:** Service charge accounts, reserve funds and tenants' deposits: theft by your own staff and fraud using fake invoices are real risks.
- **Data protection and cyber attacks:** Bank details, tenant files, meter readings: one hacked property management system affects thousands of people and stops all your annual statements.
- **Keeping the premises safe:** Gritting in winter, loose railings, broken playground equipment: the manager has to organise all of it. If someone falls, the claim is often made against the manager as well.

**Risk radar** (Compared with other trades, 1 low to 5 high.): Liability 5, Fire and water 2, Theft 3, Cyber 4, Downtime 2, Health 2

## The insurance you need

- **Professional indemnity** (Essential): Professional indemnity is required by law for managers of owners' associations and rented homes and covers mistakes with deadlines, resolutions and accounts. https://www.nammert.com/en/insurance-broker-professional-indemnity.php
- **Business liability** (Essential): Covers injury and property damage from the office and during inspections, including the safety duties you organise and caretakers you employ. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Cyber insurance** (Strongly advised): Pays for IT forensics, data breach notifications and downtime if your management software or email accounts are attacked. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Business legal expenses** (Strongly advised): For disputes over your fees, dismissal as manager and employment law, and for criminal proceedings, for example after an accident on a property you manage. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php
- **D&O insurance** (Depends on the business): For managing directors of a management GmbH, who can be personally liable for organisational failures. https://www.nammert.com/en/insurance-broker-directors-and-officers.php
- **Business contents** (Depends on the business): For office furniture, files and IT against fire, water and burglary. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Company pension (bAV)** (Depends on the business): A company pension helps you keep good bookkeepers and property officers, who are hard to find in this industry. https://www.nammert.com/en/insurance-broker-company-pension.php

## What it costs: example prices

The compulsory cover is priced mainly on your turnover and the number of units you manage. For small and medium sized firms the premiums are modest; with higher cover and fidelity insurance they rise accordingly.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Professional indemnity | Manager with 40 units and 50,000 euros turnover, 500,000 euros of cover | about 120 to 250 euros a year |
| Professional indemnity | Manager with 300 units and 110,000 euros turnover, 500,000 euros of cover | about 230 to 460 euros a year |
| Professional indemnity | Management firm with 1,500 units and 500,000 euros turnover | about 670 to 1,200 euros a year |
| Business liability | Office with up to five employees | about 80 to 200 euros a year |
| Cyber insurance | Property management firm with around 500,000 euros turnover, 500,000 euros of cover | about 500 to 900 euros a year |

For comparison: For a small manager, the compulsory professional indemnity and public liability together cost about as much a year as the fee for managing a single flat in an owners' association.

_Guide prices excluding German insurance premium tax, as of September 2026, based on published examples from comparison sites and our own quoting experience. With 1 million euros of cover per claim, the premium rises by roughly a third to a half._

- [transparent-beraten.de: professional liability for residential property managers](https://www.transparent-beraten.de/berufshaftpflichtversicherung/berufsgruppen/wohnimmobilienverwalter/)
- [transparent-beraten.de: professional indemnity for property managers](https://www.transparent-beraten.de/vermoegensschadenhaftpflicht/berufsgruppen/hausverwalter/)
- [transparent-beraten.de: cyber insurance](https://www.transparent-beraten.de/cyber-versicherung/)

## Our suggestions: three packages

- **Compulsory** (Sole manager with a few owners' associations or rented buildings): Professional indemnity, Business liability. Together: about 200 to 450 euros a year
- **Office** (Management firm with staff and a few hundred units): Professional indemnity, Business liability, Cyber insurance, Business legal expenses. Together: about 1,000 to 2,000 euros a year
- **Management company** (Management GmbH with more than 1,000 units and its own caretaker service): Professional indemnity, Business liability, Cyber insurance, Business legal expenses, D&O insurance, Business contents. Together: about 2,500 to 5,000 euros a year

## The worst day in property management

Six things that really happen to property managers, all packed into a single Monday. Click through the day and see who pays.

- 08:05: The owners of a WEG demand the cost of a new flat roof because the manager only reported the defects after the warranty had expired. (€85,000, Paid by: Professional indemnity)
- 09:40: A tenant slips on the icy path outside a managed building. Nobody had been hired to clear it. (€14,000, Paid by: Business liability)
- 11:20: The management software has been encrypted by hackers. Statements and bank details of 800 owners are affected. (€28,000, Paid by: Cyber insurance)
- 13:30: A resolution on the façade refurbishment is challenged because the meeting invitation was flawed. A new meeting, an expert and delay costs from the contractor follow. (€12,000, Paid by: Professional indemnity)
- 15:00: An owners’ association removes you early as its manager. You sue for your fee for the rest of the contract term. (€7,500, Paid by: Business legal expenses)
- 17:45: During an inspection a property officer forces a rotten cellar door, damaging a tenant's door. (€900, Paid by: Business liability)

**Damage so far:** €147,400

## Practical tips from your broker

- Choose at least 1 million euros per claim as soon as you manage estates with more than 100 units. The legal minimum is only the floor.
- Make sure the policy also covers commercial rental management, management of individual flats (Sondereigentumsverwaltung) and building project support, if you offer them.
- Take out fidelity insurance against embezzlement by staff. It is a separate policy and not part of professional indemnity.
- Keep a deadline calendar for warranties and for the insurance policies of each building, and check the buildings sum insured every year.
- Check whether your policy keeps covering you after it ends (run off cover), because mistakes are often found years later.
- Remember the training duty of 20 hours every three years under § 34c GewO; without proof you put your licence at risk.

## Why NAMMERT for your business

- **We know licensing rules:** As insurance brokers we work under a trade licence ourselves, with compulsory insurance and proof of training. We know what a supervisory authority wants to see.
- **Several insurers compared:** Professional indemnity policies differ on run off cover, exclusions and whether managing individual flats is included. We put the quotes side by side for you.
- **We know claims from the inside:** In boat insurance we handle claims ourselves. That helps you when owners make demands and the insurer is checking whether you breached your duties.
- **For your buildings too:** We are happy to compare the buildings, liability and natural hazards insurance of the owners' associations you manage. A family business since 1989, and free for you because the insurer pays our commission.

## FAQ

### Is professional indemnity compulsory for WEG administrators?

Yes. Anyone who manages the common property of an owners' association, or rented homes on behalf of others, counts as a residential property manager under § 34c GewO and must hold at least 500,000 euros per claim and 1 million euros a year under § 15 MaBV.

### Does the requirement also apply to commercial property?

No, it applies to residential property. If you only manage offices and shops, you do not need a licence under § 34c GewO, but you should still have professional indemnity.

### What does insurance for a property management firm cost?

The compulsory cover starts at about 120 euros a year for small managers. A firm with a few hundred units usually pays 1,000 to 2,000 euros for professional indemnity, public liability, cyber and legal expenses together.

### Who pays if an employee embezzles service charge money?

Not professional indemnity, which excludes intentional acts. That is what fidelity insurance is for, and it makes particular sense for managers who hold client trust accounts.

### Is the manager liable for clearing snow and ice?

The manager has to organise and supervise it. If nobody was hired or the checks were skipped, the manager can be liable alongside the owners' association. Public liability covers this.

### Do I need my own insurance as a rental manager if the owner is insured?

Yes. The owner's policies protect the building and the owner, not your mistakes as manager. For residential property, your own professional indemnity is compulsory.

## Request quotes

We obtain quotes and come back with a comparison. Free of charge and without obligation: the insurer pays our commission. You can write in English. https://www.nammert.com/en/business-insurance-property-management.php#anfrage

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NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker.

NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.