Tenants: New Value vs. Depreciated Value in Germany

As a tenant in Germany, it is important to know whether your household or liability insurance compensates a loss at new value or only at depreciated (actual) value. This distinction often determines the amount of reimbursement and whether you must cover additional costs. In this article you will learn how to check policies, which terms in conditions are important, which evidence insurers require, and how to document a damage claim correctly. I also explain which courts handle rental disputes and which forms tenants can use so you can act quickly and budget-friendly. Practical steps help detect coverage gaps and, if necessary, lodge an objection.

What do new value and depreciated value mean?

New value means the insurer covers the cost of replacing the item with an equivalent new one. Depreciated value takes age and wear into account and pays only the current market value. For tenants it is important: many policies explicitly distinguish between new value and depreciated value in the terms. Read the terms carefully, especially exclusion and depreciation rules. ^[1]

How tenants check coverage

Proceed systematically to quickly determine whether a damage case will be handled as new value or depreciated value.

• Read the policy wording: search for "new value", "depreciated value", "replacement cost" or explicit depreciation rules.
• Prepare the claim: date, place, cause and a detailed list of affected items.
• Collect evidence: purchase receipts, photos, serial numbers and valuations.
• Contact the insurer: report the damage promptly and ask about their valuation procedure.

Insurance cases & examples

Example: Water damage

With a burst pipe, clothing, furniture and electronics may be affected. Household insurances often pay new value for recently purchased items, otherwise they pay depreciated value. Document the damage immediately, stop further damage if possible, and report the claim in writing to the insurer.

Example: Burglary

In theft cases insurers typically require an inventory list and a police report. For high-value items, a new value clause in the policy is especially important for tenants.

Rights in disputes: Courts and forms

Rental disputes are usually heard at the local court (Amtsgericht); appeals go to the regional court (Landgericht), and significant BGH rulings set precedents. If you need court assistance you can apply for legal aid (process cost assistance) or defend/file an eviction action; the rules of civil procedure (ZPO) apply. ^{[2] [3]}

FAQ

Will my household insurance pay new value?

It depends on the policy: some cover new value within certain periods, others pay only depreciated value. Check the terms and ask the insurer directly.

What can I do if the insurer pays only depreciated value?

Document the condition of the item and purchase receipts and file an objection if the depreciation seems unreasonable.

Which court do I contact for rental disputes?

Rental disputes typically start at the local court (Amtsgericht); for complex civil issues regional courts or the BGH may be relevant.

How-To

1. Read your policy immediately and mark passages about new value and depreciated value.
2. Create a list of all damaged or stolen items with receipts and photos.
3. Report the damage to the insurer in writing and request a written assessment.
4. If necessary, file an objection and gather evidence for an independent appraiser.
5. If unsure legally, seek advice from the local court or apply for legal aid.

Help and Support / Resources

• BGB § 535 ff. – Duties of the landlord (Gesetze im Internet)
• Federal Court of Justice (BGH) – official site
• Justice Portal – forms and local court information

1. [1] Civil Code (BGB) § 535 ff. – Gesetze im Internet
2. [2] Code of Civil Procedure (ZPO) – Gesetze im Internet
3. [3] Federal Court of Justice (BGH) – Official website