Haus und Grund Beratung: Your guide through the real estate jungle – How to optimally secure your property
19 Apr 2025
7
Minutes
Katrin Straub
CEO at nextsure
Do you own a property or are you planning to acquire one? A property and land consultation can significantly assist you with complex questions about tenancy law, ancillary costs, and maintenance. Find out how you can secure yourself legally and financially.
The topic in brief and concise terms
Haus & Grund often offers members free legal advice on tenancy law, operating costs, and the law on residential property ownership.
Residential building, household contents, and personal liability insurance are basic coverages for homeowners.
An insurance for natural hazard damage is becoming increasingly important and could soon become mandatory.
Quick Facts: The essentials about House and Ground consulting and protection
The House and Property Advice is an important contact point for private property owners and landlords in Germany. It covers a broad range of topics, from legal issues to economic aspects of property management. For members, the initial consultation is often free of charge.
Practice Check: What specific support does Haus und Grund offer?
The House and Property Associations offer their members a wide range of advisory services. A key focus is on tenancy law, such as creating legally secure tenancy agreements or resolving disputes with tenants. Often, three face-to-face and three telephone legal consultations per year are included in the membership fee. Correct preparation of service charge statements is also a frequently requested service. Furthermore, members receive support in condominium law, for instance in questions regarding owners’ meetings or the use of communal property. Many associations also offer forms and templates, which reduce the administrative burden for owners. The costs for additional activities beyond basic consultation are transparently presented. Comprehensive advice is the first step towards risk minimisation.
Essential Protection: The Most Important Insurance for Homeowners
In addition to comprehensive advice, having the right insurance cover is essential. The building insurance is a must for every homeowner, covering damage caused by fire, water, storm, and hail. It covers the cost of repairs or rebuilding to current value in the event of damage. The household contents insurance protects movable items such as furniture and electrical appliances against similar hazards. For rented properties, liability insurance for property owners is indispensable, as personal liability insurance often does not apply here. It protects against claims from third parties, for example, if a passerby is injured on the property. The difference between building insurance and household contents insurance should be clear to every owner.
Additional protection against natural hazards
The natural hazard insurance is gaining importance in view of increasing extreme weather events. It covers damage caused by heavy rain, flooding, snow pressure, or earthquakes and is usually offered as an add-on to building or household contents insurance. According to media reports, about half of property owners in Germany are still not insured against natural hazards, although mandatory insurance is being discussed. Some federal states, such as Baden-Württemberg, previously even had mandatory insurance, which is why the insurance density there is significantly higher at 94 percent.
Expert Depth: Legal Aspects and Current Developments
In tenancy law, there are constantly new rulings that are relevant for landlords. For instance, on 23 October 2024, the Federal Court of Justice (BGH) ruled (Ref.: VIII ZR 106/23) that while a grace period payment by the tenant can avert an immediate termination, a simultaneously issued ordinary termination remains unaffected. This underscores the necessity of handling termination processes precisely. Another ruling from 10 July 2024 (Ref.: VIII ZR 184/23) states that landlords are allowed to offset claims for damages, even if they are time-barred, against the tenant's deposit repayment claim. Our expert tip: Always document all processes and damages in detail to be able to assert your claims in case of a dispute. Landlord legal protection insurance can be a valuable support in this regard.
The debate on mandatory natural disaster insurance
The introduction of a nationwide mandatory insurance for natural disaster damage is being intensely debated. The goal is to achieve wider coverage of the population against natural disasters and to relieve the public sector in the event of major damage incidents. Federal Minister of Justice Stefanie Hubig announced that in the future, residential building insurance policies will only be offered with natural disaster coverage for new contracts. In France, such a mandate has existed for many years. For property owners, this potentially means increased costs but also more comprehensive protection. It is advisable to review and, if necessary, adjust your own insurance situation early before a legal regulation comes into effect. Many people wonder: Do you need building insurance? Legally not always, but practically it is indispensable.
Special case of renting: Which policies are additionally important?
Landlords face particular risks that go beyond the protection for owner-occupied property. Landlord liability insurance is essential to safeguard against third-party claims for damages that arise on rented premises or within the building. Consider the classic case of a tenant falling in the stairwell. Additionally, landlord legal expenses insurance is often worthwhile. It covers legal and court costs in disputes with tenants, for instance, due to rent arrears, termination due to personal occupancy, or utility bill settlements. The costs for this can quickly reach several thousand euros. Rent guarantee insurance can also mitigate financial losses caused by tenants who are unable or unwilling to pay. An overview of which insurances landlords need helps in choosing the appropriate protection.
The following insurances are particularly relevant for landlords:
Homeowner and landowner liability insurance (often also referred to as landlord liability insurance)
Landlord legal expenses insurance
Home insurance (possibly with natural hazard cover)
Rent guarantee insurance (optional but worth considering)
Our expert tip: Regularly check whether your insurance coverage is up to date and covers all specific risks of your rental activities. Consulting with insurance experts, such as those offered by nextsure, can provide clarity here.
Digital Aids and Advice: Your Path to Optimal Insurance
Digitalisation offers property owners new opportunities to inform themselves and secure their assets. Online comparison portals provide an initial overview of insurance rates. However, for a tailored solution that takes into account your individual situation and the specific risks of your property, personal advice is often indispensable. As a digital insurance portal, nextsure combines comprehensive niche insurance options with expert consultation. This way, you can ensure that you are neither under-insured nor over-insured and enjoy optimal protection in the event of a claim. An individual risk analysis can highlight coverage gaps and identify optimisation potential. Property owner's liability insurance is just one of many components.
More useful links
Haus & Grund is the German association of private property owners and landlords, offering comprehensive information and advice.
The Federal Statistical Office (Destatis) provides up-to-date data on construction prices and real estate price indices in Germany.
The Federal Chamber of Notaries provides information on the duties and services of notaries, who play an important role in property transactions.
Under Gesetze im Internet you will find the full text of the Housing Promotion Act (WoFG) and other relevant laws.
The Consumer Advice Centre offers independent information and advice on building and real estate financing.
Wikipedia provides an overview of the history and structure of the Haus & Grund association.
The German Energy Agency (dena) provides comprehensive information on energy certificates and their significance for real estate.
The Federal Ministry of Finance explains the regulations on property tax and land transfer tax.
FAQ
How often can I take advantage of the free legal advice at Haus und Grund?
The extent of free legal advice depends on the respective House & Ground association and the amount of the membership fee. Often, for example, three personal consultations and three telephone consultations per calendar year are included.
Is natural disaster insurance automatically included in the residential building insurance?
No, elemental damage insurance is usually an optional add-on and must be actively added to home or contents insurance. It is important to check this when concluding the contract.
What happens to the home insurance when selling a house?
When a house is sold, the existing residential building insurance generally transfers to the buyer. However, the buyer has a special right to terminate the contract and can decide either to take over the existing agreement or cancel it and take out a new policy.
Which recent Federal Court of Justice rulings are particularly important for landlords?
Important current judgments concern, for example, the validity of ordinary terminations despite a grace period payment in the event of rental arrears (Federal Court of Justice, Case No.: VIII ZR 106/23) and the offsetting of statute-barred claims for damages against the deposit (Federal Court of Justice, Case No.: VIII ZR 184/23).
Do I, as a landlord of a single apartment, also need landlord liability insurance?
Yes, even as the landlord of a single apartment, a house and landowners' liability insurance (often called landlord's liability insurance) is highly recommended, as private liability insurance usually does not cover damages related to renting.
How can nextsure help me as a property owner?
nextsure, as a digital insurance portal, provides access to niche insurances and customised protection solutions. We support you with expert advice and an individual risk analysis to find the optimal insurance coverage for your property and close any coverage gaps.
