Tenants: New-for-Old or Actual Cash Value in Germany

Many tenants in Germany face the question whether their household insurance reimburses "new-for-old" (Neuwert) or only the "actual cash value" (Zeitwert) in case of damage. This choice determines whether old items are replaced at the purchase price or only partially compensated after depreciation. This guide explains in plain language what both terms mean, how they affect your rented flat and daily life, and how to proceed practically: documentation, deadlines, standard forms and what to do in case of disputes before the local court. The aim is to help tenants make secure decisions, assert claims correctly and understand common practical examples.

What does new-for-old and actual cash value mean?

New-for-old: The insurer pays the cost to buy damaged or stolen items new. Actual cash value: The insurer pays the remaining value after deducting depreciation for age and wear. For tenants, new-for-old can mean immediate replacement instead of saving for years.

Typical example for tenants

A new TV (purchase price €800) is damaged by water. With new-for-old the insurer would typically replace it with a comparable new TV. With actual cash value the insurer deducts depreciation for age and use and might pay only around €300–€500. Such differences especially affect tenants with limited budgets.

How the choice affects your rented flat

For the flat itself, damage regulation and repairs matter: for damages to fixtures or communal installations, the lease and landlord liability often decide. As a tenant you should check whether your household or liability insurance covers consequential, repair or restoration costs.

Practical steps after a claim

• Check your policy for new-for-old or actual cash value coverage (rent) and note coverage amounts and deductible.
• Document the damage with photos and item lists (photo, document) including purchase receipts if available.
• Report the damage to your insurer within the stated deadline and request confirmation.
• Use standardized letters or templates for the claim (form) and keep copies.
• If disputes persist, consider filing a lawsuit at the local court (court) or seek legal advice.

Examples with numbers

Example A (new-for-old): Smartphone bought new €600, total loss, new-for-old coverage → insurer payout: approx. €600 minus any agreed deductible.

Example B (actual cash value): Same smartphone 3 years old, depreciation 50% → insurer payout: approx. €300 minus deductible.

Rights, deadlines and legal steps

Claims arising from the tenancy and possible claims for damages fall under sections §§ 535–580a of the German Civil Code (BGB)^[1]. For court actions, the rules of the Code of Civil Procedure (ZPO) apply^[2]. If an insurer refuses payment or only pays actual cash value, tenants should first lodge an objection and submit evidence; if the refusal persists, the next step is often a lawsuit before the local court.^[3]

FAQ

What does a household insurance pay under new-for-old?

The insurer typically pays the cost of buying comparable new items without deduction for age or wear.

What exactly is actual cash value?

Actual cash value is the current value of an item after depreciation for age and wear; the compensation is therefore lower than new-for-old.

Can I arrange new-for-old as a tenant?

Yes, many insurers offer new-for-old coverage for a higher premium; check contract terms and coverage limits.

How-To

1. Step 1: Immediately photograph and document the damage (form, photo).
2. Step 2: Create an inventory list with purchase dates and prices (document).
3. Step 3: Send the claim to your insurer within the deadline and request confirmation (deadline).
4. Step 4: If denied, file a written objection and provide additional evidence (call).
5. Step 5: If unresolved, consider legal action at the local court (court).

Help and Support

• gesetze-im-internet.de — BGB and other laws
• bundesgerichtshof.de — BGH decisions
• bmjv.de — Federal Ministry of Justice and Consumer Protection

1. [1] Gesetze im Internet — BGB §§ 535–580a
2. [2] Gesetze im Internet — ZPO
3. [3] Bundesgerichtshof — Decisions and information