New Value vs. Current Value: Tenant Rights Germany

As a tenant in Germany, you often face questions when damage or wear affects the value of an item. Is the new value or the current value decisive for settlement? What role do liability and household insurances play, and how does this affect tenancy law, repair obligations and claims against the landlord? This text explains in plain language when new value or current value is applied, shows typical examples (e.g. water damage or defective electronic devices) and gives practical steps for damage documentation, forms and possible court steps in Germany. The aim is to provide tenants clear actions so they can optimally settle damages and assert their rights under the BGB.

What do new value and current value mean?

New value is the amount needed to procure an item anew. Current value takes age and wear into account and deducts depreciation. In insurance settlements the policy decides whether new value or current value is paid; in civil-law relations between tenant and landlord the legal basis (e.g. compensation, obligation to remedy) can affect the calculation^[1].

When does new value apply, when current value?

• Many household insurances pay new value only if a new-value clause is explicitly agreed in the contract.
• For older items insurers often reduce reimbursement to current value because wear is considered.
• In court, for compensation claims it may be examined whether the tenant demands replacement (new value) or a monetary settlement (current value).
• For tenancy law, remedy and compensation according to §§ 535–580a BGB are relevant; often practical solutions are offsetting with rent reduction or landlord repairs.

Typical practical examples

Example 1 – Water damage to furniture

A water leak damages furniture. The household insurer checks the policy: if new value is agreed, comparable new furniture is reimbursed; if only current value, depreciation is deducted. As a tenant you should inform the insurer, submit receipts and photos and notify the landlord if the cause lies in the apartment or building services.

Example 2 – Defective electronic device

A TV fails after a short circuit. If there is a manufacturer warranty or repair is possible, repair may be cheaper than replacement. Documentation and cost estimates help decide and negotiate with insurer or landlord.

Documentation, forms and legal steps

Key steps for tenants: report damage to insurer, send written defect notice to landlord, collect evidence and cost estimates. If out-of-court settlement fails, filing a lawsuit at the competent local court is possible; procedural rules are governed by the Code of Civil Procedure^[2]. Observe deadlines and formal requirements for filings.

Important templates and forms

• Defect notice (written): No official nationwide form required; state briefly the facts, a deadline for remedy and desired response. Example: "Please remedy the mold infestation within 14 days."
• Filing a claim at the local court (civil claim): If no agreement is reached, a claim is the formal procedure to assert rights under the ZPO; contact the competent local court for filing details^[2].
• Sample termination letter: For exceptional cases such as immediate termination due to uninhabitability there are sample instructions; check legal requirements in the BGB before terminating^[1].

FAQ

Does new value always apply in a water damage case?

Not automatically; it depends on the insurance conditions. Some policies pay new value, others only current value.

Can I claim repair costs from the landlord as a tenant?

If the defect is the landlord's responsibility or he violated maintenance duties, you can demand remedy or compensation.

Where do I file a lawsuit if no agreement is possible?

Such tenancy disputes are usually heard at the competent local court; appeals go to the regional court.

How-To

1. Collect evidence: photos, purchase receipts, witness statements and cost estimates.
2. Inform the insurer and the landlord in writing with a deadline.
3. Contact the competent authority or seek legal advice if there is disagreement.
4. If necessary, file a claim at the competent local court; observe ZPO deadlines and formal requirements.

Help and Support / Resources

• Gesetze im Internet (BGB, ZPO) - official texts
• Federal Court of Justice (BGH) - case law
• Federal Ministry of Justice (BMJ) - information

1. [1] BGB §§ 535–580a — Bürgerliches Gesetzbuch
2. [2] ZPO — Zivilprozessordnung
3. [3] Federal Court of Justice — decisions and information