New Value vs. Actual Value: Tenants in Germany

New value and actual value: what this means

New value means the value of an item in like-new condition; in total loss cases an insurer often replaces the new value if the policy provides so. Actual value means that age and wear of the item are deducted, so compensation can be lower. Legal bases for landlord and tenant duties can be found in the BGB.^[1]

Short calculation examples

• New value example: New washing machine costs 700 EUR; in total loss the policy pays 700 EUR.
• Actual value example: Same machine 5 years old, 50% wear → actual value 350 EUR payout.

Insurance practice for tenants

Household insurance often pays the new value in many policies within certain periods or the actual value for older items depending on contract terms. Tenant liability insurance often covers damages caused by the tenant and usually calculates with actual value if replacement is not like-new. Important case law of the Federal Court of Justice can influence contract interpretation.^[4]

What tenants should do concretely

• Document: secure photos, date, witnesses and purchase receipts.
• Report: notify landlord and your insurer promptly.
• Check: read your insurance terms: does it state new value or actual value?
• Observe deadlines: ZPO deadlines and court jurisdictions apply in legal disputes.

Important forms

• Termination letter (template) from the Federal Ministry of Justice – use when ending the tenancy; example: send a timely notice to the landlord due to personal need.
• Application for a Wohnberechtigungsschein (WBS) – issued by the city administration; important when entitled to subsidized housing.
• Filing a complaint / statement of claim at the local court (under ZPO) – use if out-of-court settlement fails; example: eviction claim or claim for failure to repair.

For lawsuits and court steps the Code of Civil Procedure applies; information and forms are available at the competent local court or justice portal.^[2][3]

If it goes to court

Tenancy disputes usually start at the local court; appeals go to the regional court and possibly to the Federal Court of Justice. The complaint must state the claim, reasons and evidence. The ZPO regulates form and deadlines for filings.^[2]

FAQ

When does the insurer pay the new value?

It depends on the insurance contract: some policies pay the new value within a certain period, others generally pay only actual value.

Can I as a tenant enforce rent reduction for damages?

Yes, for significant defects rent reduction can be possible; inform the landlord in writing and document the defect.

Where do I turn in case of a dispute with the landlord?

Try to reach agreement first; if unsuccessful you can file a complaint at the competent local court or seek legal advice.

How-To

1. Document the damage: take photos, note the date and secure receipts.
2. Inform the landlord: notify in writing and set a deadline for repair.
3. Inform the insurer: check the policy and submit a claim online or by form.
4. Collect evidence in case of dispute: observe deadlines and consider legal steps.
5. File a complaint: submit the statement of claim under ZPO at the local court and check jurisdiction.

Help and Support

• Gesetze im Internet (BGB, ZPO) – official statute texts
• Justice portal – information on local courts
• Federal Court of Justice – decisions and case law

1. [1] Bürgerliches Gesetzbuch (BGB) §§ 535–580a – Gesetze im Internet
2. [2] Zivilprozessordnung (ZPO) – Gesetze im Internet
3. [3] Amtsgericht (Competence) – Justizportal
4. [4] Decisions of the Federal Court of Justice (BGH) – Bundesgerichtshof