Replacement vs. Current Value for Tenants in Germany

As a tenant in Germany, it is important to understand how "replacement value" and "current value" affect compensation for damaged items. This practical guide explains in plain language when insurances like liability or household contents cover damages, what role the tenancy agreement plays, and what formal steps you should take as a tenant, such as documentation, notifying the landlord, and correctly completing official forms. The advice is practical and aimed at students and other tenants on a tight budget so you can assess damages fairly, assert claims, and avoid unnecessary costs.

What do replacement value and current value mean?

Replacement value is the amount needed to buy an item new today. Current value reduces that price due to wear and the items age. For tenants, the difference is decisive when furniture or household goods must be replaced.

Why this matters for tenants in Germany

Whether you receive replacement or current value as a tenant affects how much you must pay yourself. In liability and household contents insurance, the contract wording (replacement clause vs. current value regulation) determines the scope of reimbursement. Check your insurance contract in advance and compare possible deductibles.

Concrete steps in case of damage

Send damage reports in writing to the landlord and insurer; document everything with photos, dates and a short description. If the use of the apartment is impaired, consider rent reduction according to the rules of the BGB.^[1]

• Documentation: collect photos, dates, witnesses and an exact damage description.
• Inform the landlord: report in writing and observe deadlines.
• Contact the insurer: check the policy, look for a replacement clause and submit the damage report.
• Repairs: only carry out urgently necessary measures without the landlords consent, otherwise you risk the costs.
• Observe deadlines: rules for lawsuits and objections are set by the ZPO and the BGB.^[2]

Forms and official templates

Important official documents and legal bases include:

• Termination letter / sample letters for damage reports to the landlord (see templates in official legal sources and state justice portals).
• Complaint forms for eviction or damages: address to the competent local court; procedure follows the ZPO.^[2]
• Insurance notice: use your liability/household contents insurers form and keep a copy.

When rent reduction is possible

If apartment use is limited (e.g., heating failure, mould), tenants can reduce rent. The legal basis is in the BGB; disputes are often decided by the local court or, ultimately, the Federal Court of Justice (BGH).^[1][4]

Frequently Asked Questions

What does liability insurance pay and what does household contents insurance pay?

Liability insurance compensates damage you cause to third parties (e.g., landlord). Household contents insurance compensates your private belongings; whether replacement or current value applies is stated in the insurance contract.

Can I have repairs done immediately?

Only in cases of imminent danger or to prevent greater damage. For paid repairs without agreement, you risk bearing the costs.

Where do I resolve disputes about value or compensation?

First with the landlord and insurer; in case of disagreement the local court decides tenancy disputes.

How-To

1. Step 1: Immediately document the damage photographically and in writing.
2. Step 2: Inform the landlord and set a deadline for reply (e.g., 14 days).
3. Step 3: Report the damage to your liability/household contents insurer and submit all receipts.
4. Step 4: Arrange urgent repairs, collect receipts and agree costs in advance.
5. Step 5: If disputed, file a claim at the local court; follow the ZPO and have evidence ready.^[2]

Key Takeaways

• Compare insurance contracts for replacement clauses to avoid surprises.
• Documentation and deadlines are crucial for successful claims.
• If needed, the local court and BGH are the authorities to resolve disputes.

Help and Support / Resources

• §§535–580a BGB (gesetze-im-internet.de)
• Zivilprozessordnung (ZPO) (gesetze-im-internet.de)
• Federal Court of Justice (BGH) – information and decisions

1. [1] §§535–580a BGB (gesetze-im-internet.de)
2. [2] Zivilprozessordnung (ZPO) (gesetze-im-internet.de)
3. [3] Heating Costs Regulation (HeizKV) (gesetze-im-internet.de)
4. [4] Federal Court of Justice (BGH) – tenancy law decisions