Tenant Guide: New Value vs Time Value in Germany
As a tenant in Germany you often encounter terms like new value and time value in insurance claims or renovation questions. Confusion can lead to incorrectly calculated reimbursements, delayed repairs or unnecessary disputes with the landlord. This guide explains in plain language how insurers determine these values, what rights you have under the BGB and which steps make sense when reports, cost estimates or bills are unclear. You will receive practical tips on documenting damages, obtaining cost estimates and filing claims — so you as a tenant keep control, avoid cost traps and act securely within deadlines in Germany. This helps you shorten disputes and minimize costs.
What do new value and time value mean?
New value means the amount required to replace an item with an equivalent new one. Time value is the new value minus depreciation for age and condition. In insurance cases this distinction often determines whether repair costs or only a reduction are paid. In tenancy matters this can affect compensation claims or cosmetic repairs. Specific legal bases can be found in the BGB, in particular on landlord duties and damage remediation.[1]
Which mistakes do tenants often make?
Typical mistakes are missing or incomplete damage documentation, accepting incomplete cost estimates and missing deadlines for reporting and asserting claims. Also assuming the landlord must always immediately pay for every repair is not always correct; much depends on the cause and contractual agreements.
Practical steps for tenants
Proceed in a structured way when damage occurs: document, inform, obtain estimates and observe deadlines. If in doubt, check whether a new-value or time-value clause exists in the insurance policy and obtain an independent assessment if necessary.
- Collect photos, invoices and witness statements as evidence.
- Report the damage immediately to your household or liability insurer and inform the landlord in writing.
- Obtain at least one cost estimate or an expert opinion before commissioning repairs.
- Observe notification deadlines of the insurer and formal requirements for claims.
Forms and official templates
There is no uniform nationwide "rent reduction form requirement", but for court proceedings and written notices form letters are useful. Templates for termination, damage notification and information on procedural paths are offered by the Federal Ministry of Justice and Consumer Protection.[4] For court actions and eviction lawsuits the rules of the Civil Procedure Code (ZPO) apply.[2]
Examples of common official forms
- Termination letter (template) – when orderly termination of the tenancy becomes necessary.
- Damage notification to the insurer – written notice with date, scope and evidence.
- Statement of claim for eviction or monetary disputes (ZPO-compliant) – only for court proceedings.
When it goes to court
Many tenancy disputes are heard in the local court (Amtsgericht); higher instances are the regional court and the Federal Court of Justice for precedents.[3] Before suing, consider whether mediation, arbitration or getting a paid expert opinion is more economical.
FAQ
- What is the difference between new value and time value?
- New value is the amount to replace an item with an equivalent new one; time value takes age and wear into account.
- Who pays for repairs?
- Generally the landlord is responsible for maintenance; exceptions arise from the lease or if the tenant caused the damage.
- How quickly must I report a damage?
- Damages should be reported immediately; insurers and landlords often set deadlines of days or weeks that must be observed.
How-To
- Document the damage immediately: collect date, photos, witnesses and initial assessment.
- Report the damage in writing to the landlord and insurer; note deadlines.
- Obtain cost estimates or expert opinions to clarify new value vs time value.
- Decide whether direct repair, replacement or a payout of the time value is more economical.
- Consider mediation or filing a claim at the local court if agreement cannot be reached.
Key Takeaways
- Thorough documentation is essential for successful claims.
- Observe deadlines: missing them can cost rights.
- Use official templates to submit formal claims correctly.
Help and Support / Resources
- Federal Ministry of Justice and Consumer Protection – information on tenancy law and templates
- Gesetze im Internet – statute texts (BGB, ZPO)
- Federal Court of Justice (BGH) – decisions
