Replacement vs Depreciated Value 2025: Tenants in Germany

As a tenant in Germany, it is important to know whether replacement value or depreciated value applies to a loss. Replacement value means: procurement at the current price, depreciated value takes age and wear into account. For household and liability claims, the distinction affects the amount your insurer pays and thus your choice of tariff and deductible. In this text I explain in practical terms when insurers apply replacement value or depreciated value, which documents and forms you need and how you as a tenant can assert claims with the landlord or court. At the end you will find concrete action steps, official forms and links to competent courts in Germany. This helps with claims settlement and contract choice.

What does "replacement value" and "depreciated value" mean?

Replacement value: The insurer pays the cost of procuring an equivalent new item. Depreciated value: Compensation is reduced for use, age and wear. Which rule applies is in your policy; replacement value is often only agreed in special tariffs. A careful review of the insurance conditions and the damage description is decisive.

When does household or liability insurance pay replacement value, when depreciated value?

• If the policy explicitly agrees replacement value, the insurer pays replacement value.
• If no replacement agreement exists, depreciated value is often calculated; attach invoices and photos as proof.
• For repair instead of replacement the insurer may cover actual repair costs, which depends on practice.
• Deadlines for reporting damage are regulated in the policy; report damages without delay or risk reductions.
• In disputes over valuation, the local court may decide; legal bases are the BGB and the ZPO.^[1]

How should tenants document and report damages correctly?

Clear documentation increases the chances of successful settlement. Note date, cause, visible damage and possible witnesses. Notify your insurer and, if necessary, the landlord promptly.

• Take photos and videos of the damage and serial numbers.
• Attach invoices, purchase receipts and warranty cards.
• Report the damage to the insurer immediately and request confirmation.
• In conflicts: object in writing, observe deadlines and litigation is handled at the local court.^[2]

Forms and practical templates

There are no uniform nationwide forms for household claims, but important documents and templates are useful: a written damage report to the insurer, an objection letter in case of denial, and, if necessary, the complaint to the competent local court. For legal steps, §§ 535–580a BGB are relevant; procedural rules are in the ZPO.^[1][2]

Examples of form titles and use:

• Termination/Objection letter (template): Written template to preserve deadlines and reasons, e.g., in disputes over cost liability; templates and guidance from the Federal Ministry of Justice.
• Damage report to the insurer (own template): When the damage occurred, list damaged items, estimated value, and attach copies of receipts.

Häufige Fragen

What is the practical difference between replacement value and depreciated value?

Replacement value pays new purchase costs, depreciated value deducts wear and age; the policy determines which applies.

Does liability insurance always pay replacement value for third-party fault?

No: liability insurers also check the policy and type of damage; depreciated value is often applied unless replacement value was contractually agreed.

Where do I turn if the insurer refuses payment?

First file a written objection and submit documents; if refusal continues, a lawsuit at the local court may be necessary.^[2]

Anleitung

1. Document the damage: create and secure photos, invoices and witness notes.
2. Inform insurer and landlord: send written damage report with attachments.
3. Check the policy: verify whether the policy provides replacement or depreciated value and prepare evidence.
4. In case of dispute: file an objection, observe deadlines and consider a claim at the local court.

Help and Support / Resources

• Bürgerliches Gesetzbuch (BGB) – legal text
• Zivilprozessordnung (ZPO) – legal text
• Federal Court of Justice – decisions in tenancy law
• Federal Ministry of Justice – information and templates

1. [1] Bürgerliches Gesetzbuch (BGB) – gesetze-im-internet.de
2. [2] Zivilprozessordnung (ZPO) – gesetze-im-internet.de
3. [3] Bundesgerichtshof – bundesgerichtshof.de
4. [4] Federal Ministry of Justice – bmj.de