Tenants in Germany: Replacement vs Time Value
As a tenant in Germany, you may face the question: replacement value or time value? This distinction determines whether you receive compensation for new items or only for residual value. In practice, unclear receipts, missed deadlines, and incomplete damage documentation often lead to insurer reductions or disputes with landlords. This guide explains in plain language what replacement value and time value mean, which rights arise from the tenancy and the damage event, and which concrete steps you as a tenant can take so that household or liability claims in Germany are handled correctly and legally.
What do replacement value and time value mean?
Replacement value means compensation to restore the item to a new equivalent. Time value is the value after deducting age and wear. Insurers pay depending on the contract either replacement value, time value, or prorated amounts.
What role do tenancy law and insurance terms play?
For tenants, the landlord's contractual duties and the tenant's own duties when reporting damage are relevant. Rights and obligations in the tenancy relationship are regulated in the BGB[1]. In disputes about eviction or legal enforcement, the rules of the ZPO apply[2].
Common mistakes by students and young tenants
- Missing receipts and invoices for damaged items.
- Not reporting promptly to landlord or insurer.
- No written damage report or incomplete forms.
- Poor documentation of repair costs or estimates.
How to assert your claims correctly
Start with complete damage documentation: before-and-after photos, purchase receipts, serial numbers and witnesses. Inform your landlord first if the rental property is affected, and file a claim with your household or liability insurer in parallel.
Examples of form use and court routes
For out-of-court claims, the payment order (Mahnverfahren) can be used; for eviction or lawsuits, local courts (Amtsgericht and Landgericht) are competent, while higher legal questions are decided by the BGH[3]. Standard forms and guidance on lawsuits and payment orders are available on justice and ministry websites[4].
Frequently Asked Questions
- What is the difference between replacement value and time value?
- Replacement value compensates the cost of a new item; time value reduces that amount by wear and age.
- Which insurer pays which value?
- The policy decides: household insurance often pays replacement value if a replacement clause exists; otherwise time value applies; liability insurance covers damage to third-party property caused by you.
- Which deadlines must I observe?
- Notify the landlord and insurer immediately; exact deadlines are in your policy and statutory rules.
How-To
- Document the damage immediately with photos, date and witnesses.
- Send a written damage report to landlord and insurer.
- Collect invoices or estimates for replacement or repair.
- Observe deadlines for objection or lawsuit if payment is refused.
- For court resolution contact the competent local court and present all evidence.
