# Insurance for landlords of flats, houses and commercial space in Germany

> For most owners, a rented building is the most valuable thing they have, and other people use it every day. A burst pipe on the third floor, black ice at the front door, a tenant who stops paying: these are the cases that really hit landlords. Part of the premiums can be passed on to your tenants through the service charges.

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

## Can I pass the insurance premiums on to my tenants?

Yes, for the most part. Under the German Operating Costs Regulation (Betriebskostenverordnung), premiums for property and liability insurance on the building can be charged to tenants if the tenancy agreement says so. That means buildings insurance including natural hazards and glass, and property owner's liability. You cannot pass on loss of rent or legal expenses insurance, because they only protect you.

## At a glance

- **Compulsory:** No insurance is required by law for landlords, but banks almost always insist on buildings insurance when they lend, and a heating oil tank makes water pollution liability cover (Gewässerschadenhaftpflicht) urgently necessary
- **Biggest risk:** Water from pipes, fire and heavy rain damaging the building, plus lost rent while it is being repaired
- **Basic cover from:** about 35 to 70 euros a year for property owner's liability (Haus und Grundbesitzerhaftpflicht) on a small block of flats
- **Statutory accident insurer:** VBG, the Berufsgenossenschaft for administration and services, as soon as you employ caretakers, cleaners or mini jobbers for the building
- **Often forgotten:** Natural hazards: heavy rain and sewage backflow are not included in standard buildings insurance in Germany
- **WZ 2025 / NACE:** 68.20 Vermietung, Verpachtung von eigenen oder geleasten Grundstücken, Gebäuden und Wohnungen

## What goes wrong in this trade

- **Water from pipes:** The most common damage to buildings: a burst pipe inside a wall, a leaking shower, a frosty night in an empty flat.
- **Heavy rain and backflow:** Water is pushed up through the sewer into the cellar or runs off the terrace into the ground floor. This counts as a natural hazard and is not insured automatically.
- **Safety duties:** Black ice on the pavement, a loose roof tile, a rotten tree in the yard: the owner is liable, even after handing over winter clearing to someone else if the work is not checked.
- **Lost rent after damage:** After a fire, a flat can be uninhabitable for months. The rent stops, the mortgage does not.
- **Tenants who cannot pay:** Eviction proceedings, lawyers, bailiffs: it often takes many months without rent before a flat is cleared.
- **Heating oil and technology:** A leaking oil tank contaminates the groundwater, or a solar power system on the roof fails after a power surge.

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

## The insurance you need

- **Buildings insurance** (Essential): Rebuilds the property after fire, water from pipes, storm and hail at current rebuilding cost and pays lost rent if that is included. https://www.nammert.com/en/insurance-broker-buildings-insurance.php
- **Business liability** (Essential): As property owner's liability it covers falls on the pavement and stairs and damage from falling parts; personal liability insurance only covers this for small properties you live in yourself. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Natural hazard cover** (Strongly advised): Adds heavy rain, sewage backflow, flooding and landslides, which can now happen anywhere. https://www.nammert.com/en/insurance-broker-natural-hazards.php
- **Legal expenses insurance** (Strongly advised): Landlord legal expenses insurance pays lawyers and court fees for rent arrears, evictions and service charge disputes. https://www.nammert.com/en/insurance-broker-legal-expenses.php
- **Commercial buildings** (Strongly advised): For shops, offices and practices in the building, which residential buildings insurance often only covers up to a small share. https://www.nammert.com/en/insurance-broker-commercial-buildings.php
- **Solar panel insurance** (Depends on the business): Covers the solar system on the roof against short circuits, power surges, marten bites and lost feed in income. https://www.nammert.com/en/insurance-broker-solar-panel-insurance.php

## What it costs: example prices

Buildings insurance makes up most of the cost. It depends on floor area, construction type, year built, location and claims history; liability cover, on the other hand, is cheap. Cover for lost rent from tenants who do not pay is usually sold together with landlord legal expenses insurance.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | Property owner's liability for a house with two flats, 5 million euros of cover | about 35 to 70 euros a year |
| Buildings insurance | Block of six flats with 500 square metres, including natural hazards and glass | about 900 to 1,600 euros a year |
| Commercial buildings | Mixed residential and commercial building with a shop, worth around 570,000 euros, including natural hazards | about 850 to 1,500 euros a year |
| Legal expenses insurance | Landlord legal expenses with rent default cover for one flat, 6 months | about 200 to 260 euros a year |
| Legal expenses insurance | Landlord legal expenses with rent default cover for five flats | about 1,000 to 1,350 euros a year |

For comparison: Buildings insurance and liability for a house with six flats cost about as much a year as two months' rent for one of those flats, and most of it can be passed on to the tenants.

_Guide prices excluding German insurance premium tax, as of September 2026, based on published examples from comparison sites and our own quoting experience. Buildings premiums depend heavily on postcode and year of construction._

- [transparent-beraten.de: property owner's liability](https://www.transparent-beraten.de/haus-und-grundbesitzerhaftpflichtversicherung/)
- [transparent-beraten.de: buildings insurance for blocks of flats](https://www.transparent-beraten.de/gebaeudeversicherung/gebaeudetypen/mehrfamilienhaus/)
- [transparent-beraten.de: rent default insurance](https://www.transparent-beraten.de/mietausfallversicherung/)
- [transparent-beraten.de: buildings insurance for commercial property](https://www.transparent-beraten.de/gebaeudeversicherung/gebaeudetypen/gewerbe/)

## Our suggestions: three packages

- **Flat** (Owner of a rented condominium flat; the owners' association insures the building): Business liability, Legal expenses insurance. Together: about 230 to 330 euros a year
- **House** (Owner of a block with up to six flats): Buildings insurance, Natural hazard cover, Business liability, Legal expenses insurance. Together: about 1,300 to 2,600 euros a year
- **Portfolio** (Landlord with several buildings, shops and solar systems): Buildings insurance, Natural hazard cover, Commercial buildings, Business liability, Legal expenses insurance, Solar panel insurance. Together: from about 3,500 euros a year, depending on the number of buildings

## The worst day as a landlord

Six things that really happen to landlords, all packed into a single day in January. Click through the day and see who pays.

- 06:30: In the empty top floor flat a heating pipe froze overnight and burst. Water runs down through two floors. (€38,000, Paid by: Buildings insurance)
- 07:50: A postman slips on the ungritted pavement and breaks his thigh. (€22,000, Paid by: Business liability)
- 10:00: Two flats are uninhabitable for four months until they have dried out, and the rent stops. (€7,600, Paid by: Buildings insurance)
- 13:15: A tenant has not paid for five months. Lawyer, eviction claim and bailiff. (€6,800, Paid by: Legal expenses insurance)
- 16:40: Thaw and heavy rain: sewage backflow puts the cellar under 30 centimetres of water. (€16,000, Paid by: Natural hazard cover)
- 21:10: A power surge after a lightning strike: the inverter of the solar system is broken, plus three weeks of lost feed in income. (€3,200, Paid by: Solar panel insurance)

**Damage so far:** €93,600

## Practical tips from your broker

- Insure the building at its current rebuilding cost (gleitender Neuwert). An outdated floor area or sum insured quickly leads to underinsurance.
- Include loss of rent after an insured event for at least 12 months, ideally 24.
- Take natural hazards cover together with a backflow valve: many insurers make the valve a condition of cover.
- Tell your insurer when flats are empty and keep them heated in winter, otherwise frost damage payouts may be cut.
- Check the commercial units in the building. A restaurant or workshop on the ground floor changes the risk and must be reported.
- Show the premiums you pass on in the service charge statement, but never legal expenses or rent default cover.

## Why NAMMERT for your business

- **We compare buildings insurance:** Quotes for the same building often differ by hundreds of euros for similar terms. As brokers we get several and check the sum insured and the exclusions.
- **We know how claims are settled:** In boat insurance we handle claims ourselves. When there is a negotiation after water damage about rebuilding cost, drying and lost rent, we are on your side.
- **Private and rental in one place:** Your own home, rented flats, solar system and legal cover are all handled by us, without gaps between the policies.
- **Free and personal:** The insurer pays our commission. You deal with a family business that, like many private landlords, has been thinking long term since 1989.

## FAQ

### Do I have to have buildings insurance as a landlord?

Not by law, but every lending bank requires it, and without it a fire can wipe out everything you own. It is part of every landlord's basic cover.

### Is my personal liability insurance enough for a rented flat?

For a rented condominium flat it often is, but check the terms. For a rented house you need property owner's liability.

### Which insurance premiums can I charge to tenants?

Buildings insurance, natural hazards, glass and property owner's liability, if the tenancy agreement provides for it. Not legal expenses or cover for rent arrears.

### Does insurance pay if the tenant does not pay?

Buildings insurance does not; it only covers lost rent after physical damage. For arrears there is rent default cover, usually sold with landlord legal expenses insurance.

### What does insurance for a block of flats cost?

For a house with six flats, buildings insurance with natural hazards is usually between 900 and 1,600 euros a year and liability between 35 and 70 euros. Location plays a big part.

### Who is liable if the tenant does not clear the snow?

You remain responsible for checking that it is done. Property owner's liability covers you if someone still falls and makes a claim against you.

## 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-landlord.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.