Replacement vs. Actual Value 2025: Tenant Rights Germany

Many tenants in Germany face the question after a loss whether the insurer pays replacement value or actual (depreciated) value. This article explains in plain language which differences matter, which deadlines and documents tenants should collect, and how to avoid common mistakes during claims handling. We give practical steps for communicating with landlords and insurers, name relevant laws and show which official forms may be relevant in proceedings. The goal is that you understand your rights as a tenant, document damage quickly and achieve the payout as fast and correctly as possible.

What are replacement value and actual value?

Replacement value means: procurement at current price without depreciation. Actual value means: replacement value minus age or wear-and-tear deductions. The distinction often determines the payout amount after burglary, fire or water damage. Legal basics for tenancy law can be found in the BGB, especially on landlord and tenant duties.^[1]

Common mistakes

• Insufficient documentation: missing photos, invoices or inventory lists make full reimbursement harder.
• Missed deadlines: report damage promptly to landlord and insurer to avoid reductions.
• Incorrect depreciation calculation: blanket deductions without evidence can create differences.
• Late notification to the landlord: some repairs or rent reductions require coordination.

How tenants should handle claims

Step 1: Photograph the damage thoroughly and make a list of damaged items with purchase dates and prices if available. Step 2: Report the damage in writing to your home insurance and inform the landlord in parallel. Step 3: Request written confirmation of the report and note contacts and case numbers. Important forms like payment order or complaint forms are filed at court if insurer or responsible party refuses to pay; local courts (Amtsgerichte) handle many tenancy disputes.^[2]

Practical example: settlement after water damage

Example: After a burst pipe document water levels, take photos and list affected items, notify the landlord and your home insurer and submit preliminary repair estimates. Request the insurer's statement within a clear deadline and respond in writing to refusals or reductions with supporting evidence.

FAQ

Who pays replacement or actual value?

Generally the home insurance examines the claim; whether replacement or actual value applies depends on your contract, policy terms and the age and condition of items. The landlord only pays for his own fixtures or if he caused the damage.

Can I reduce rent because of damage?

Yes, if usability is significantly impaired a rent reduction may be possible. Check the requirements under §§ 535 ff. BGB and inform the landlord in writing about defects.^[1]

What if the insurer does not pay?

Check procedural options: payment order, claim at the local court or mediation. For court actions, rules of the ZPO apply.^[3]

How-To

1. Document: take photos, create an inventory and collect receipts.
2. Report: notify landlord and insurer in writing and request confirmation.
3. Submit forms: file required forms, estimates and invoices with insurer or court.
4. Consider court steps: review payment order or complaint at the competent local court.

Key takeaways

• Thorough documentation improves chances of successful claims.
• Meet deadlines: report immediately and secure confirmations.
• Submit forms and evidence promptly to insurer or court.

Help and Support / Resources

• [1] Gesetze im Internet: BGB §535
• [2] Bundesgerichtshof (BGH)
• [3] Justizportal des Bundes und der Länder

1. [1] Gesetze im Internet: BGB §535
2. [2] Justizportal des Bundes und der Länder
3. [3] Gesetze im Internet: Zivilprozessordnung (ZPO)