Tenants: New Value vs. Actual Value in Germany

As a tenant in Germany, you may wonder whether new value or actual value applies in cases of damage or claims. This distinction affects how much your household or liability insurance reimburses and what proof landlords or courts expect. In this text I explain the differences in plain language, when each value is applied, which rights you have as a tenant and which official forms or deadlines to watch. I also show practical steps: secure evidence, report the damage, communicate with insurers and, if necessary, prepare legal action. The goal is to give you clear, actionable guidance as a tenant in Germany so you can enforce claims more effectively.

What do new value and actual value mean for tenants?

New value describes the amount needed to buy a damaged item new today. Actual value (also market or depreciation value) deducts age and wear: purchase price minus depreciation. For tenants this matters because landlords may claim damages or insurers may only compensate partially. Some policies pay new value, others only actual value; check your contract carefully.^[1]

When is which valuation important?

These situations are especially relevant for tenants:

• For household insurance after theft or fire: the insurance contract often determines new value or actual value.
• For repair costs claimed by the landlord: actual value is often applied for used items.
• For damage claims between rental parties: documentation and expert reports decide the claim amount.

Concrete evidence, forms and authorities

Important official forms and procedures tenants should know:

• Application for legal aid (Prozesskostenhilfe, PKH): filed for court proceedings when you cannot afford litigation costs. Example: for an eviction suit, check PKH so the local court can cover fees.
• Application for counseling aid (Beratungshilfe): for out-of-court legal advice if you have limited funds; useful before filing a lawsuit or a response.
• Damage documentation (photos, receipts, estimates): there is no unified form, but this evidence is essential for insurer, landlord or court.

For tenancy disputes, the local court (Amtsgericht) is generally responsible; higher appeals go to the regional court and the Federal Court of Justice may set precedents.^[2]

Practical example: shared apartment kitchen damaged

Suppose a stove in a shared flat malfunctions and severely damages the kitchen. First document the extent and inventory (photos, serial numbers, receipts). Inform the landlord and your household insurer in writing and request a binding damage confirmation. Obtain estimates; compare whether the insurer reimburses new value or actual value. If the landlord demands compensation and you dispute it, court proceedings may become necessary.

How-To

1. Document the damage: collect photos, date, involved items and receipts.
2. Notify insurer and landlord immediately and file the claim within the policy deadline.
3. Get repair estimates and compare; clarify whether replacement (new value) or repair (actual value) is appropriate.
4. In case of disagreement, consider counseling aid and possibly apply for legal aid (PKH) before a local court proceeding.^[3]

FAQ

What does household insurance pay: new value or actual value?

That depends on the tariff. Some policies pay new value; many standard tariffs pay only actual value; check your contract and ask your insurer.

Do I have to pay the entire repair as a tenant?

Only if you are responsible for the damage. Otherwise, the landlord may claim compensation under certain conditions; the amount depends on actual damage and evidence.

Where do I turn in case of dispute about compensation amount?

First contact landlord and insurer in writing with evidence; if no agreement is reached, the local court (Amtsgericht) is responsible, possibly with support from counseling aid or PKH.

Help and Support / Resources

• BGB §§ 535–580a — gesetze-im-internet.de
• ZPO — gesetze-im-internet.de
• Bundesgerichtshof — bundesgerichtshof.de

1. [1] BGB §§ 535–580a — gesetze-im-internet.de
2. [2] ZPO — gesetze-im-internet.de
3. [3] Bundesgerichtshof — bundesgerichtshof.de