Insurance for landlords: What is really necessary?
Kevin Celentano · 2026-10-13
A water pipe bursts, a tenant falls on the ungritted pavement, or the rent fails for months. As a landlord, you carry risks that can quickly become expensive. Some insurances are indispensable, others are optional but sensible depending on the property.
We show you which insurances you really need, which ones you can pass on to the tenant, and where the traps lie.
011. Property owner's liability (Haus- und Grundbesitzerhaftpflicht)
This is the most important insurance for every landlord. It protects you if third parties are harmed on your property and you are liable for it.
- Examples: A tenant slips on the icy pavement in winter (breach of the duty to ensure public safety), or a roof tile falls on a parked car.
- Performance: The insurance pays for personal injury, property damage, and financial loss. It also acts as a "passive legal expenses insurance" by fending off unjustified claims.
- Costs: These are usually between €30 and €100 per year, depending on the size of the property.
- Passing on: You can pass these costs on to the tenant as part of the ancillary costs (according to BetrKV).
022. Residential building insurance (Wohngebäudeversicherung)
While liability protects against claims from others, building insurance protects your own property.
- Covered risks: Fire, lightning strike, explosion, storm (from wind force 8), and hail.
- Expansion: You should definitely add "natural hazards" (Elementarschäden) to cover damage from flooding, heavy rain, or earthquakes.
- Passing on: These costs are also fully apportionable to the tenant.
- Tip: Make sure that "gross negligence" is covered. If the tenant leaves the candle burning and the house catches fire, the insurance should still pay.
033. Landlord's legal expenses insurance (Vermieterrechtsschutz)
Disputes with tenants are not uncommon – whether it's about the rent index, the ancillary cost statement, or a notice of termination for personal use.
- Performance: It covers the costs for lawyers and court, often including a mediation procedure.
- Waiting period: Most contracts have a waiting period of three months. You cannot insure a dispute that has already started.
- Passing on: The costs for legal expenses insurance are not apportionable to the tenant. You have to pay them yourself.
044. Rent loss insurance (Mietausfallversicherung)
This insurance (often called "Mietnomaden-Versicherung") helps if the tenant stops paying.
- Performance: It replaces the missing rent and often also covers the costs for an eviction suit and the renovation of a trashed apartment.
- Requirement: Most insurers require a credit check (e.g. SCHUFA) before the start of the tenancy.
- Sense: Especially for smaller apartments where a loss of rent weighs heavily, it can be a safety net.
05Summary: Which insurance for whom?
| Insurance | Necessity | Apportionable? |
|---|---|---|
| Property owner's liability | Indispensable | Yes |
| Residential building insurance | Indispensable | Yes |
| Legal expenses insurance | Optional | No |
| Rent loss insurance | Optional | No |
FAQHäufige Fragen
Which insurances can I pass on to the tenant?
You can pass on the property owner's liability and residential building insurance (including natural hazards) as part of the ancillary costs. Legal expenses insurance and rent loss insurance, on the other hand, are your private business and not apportionable.
Do I need separate liability insurance for a condominium?
Usually not. The homeowners' association (WEG) takes out building and liability insurance for the whole house. However, check whether your 'separate property' (the apartment itself) is sufficiently covered or whether you need a supplement.
Is 'natural hazard' insurance really necessary?
Yes, absolutely. Damage caused by heavy rain or flooding is increasing. Without this supplement to the building insurance, you bear the costs for such damage alone, which can lead to a total loss.
What does rent loss insurance do?
It pays the rent if the tenant fails to pay and can also cover the costs for eviction and renovation. It is particularly interesting for landlords who depend on the monthly income and have little reserve for long vacancies or legal disputes.