Haus und Grund Advice: Your guide through the property jungle – how to protect your property as effectively as possible
19.04.25
9
Minutes
Katrin Straub
Managing Director at nextsure
Do you own a property or are you planning to buy one? A Haus und Grund consultation can provide crucial support with complex questions about tenancy law, ancillary costs and maintenance. Find out how to protect yourself legally and financially.
The topic in brief and concise terms
Haus & Grund often offers members free legal advice on tenancy law, service charges and condominium law.
Buildings, contents and private liability insurance are basic cover for homeowners.
Natural hazard insurance is becoming increasingly important and could soon become mandatory.
Quick Facts: The most important information on Haus und Grund advice and protection
The Haus und Grund advice service is an important point of contact for private property owners and landlords in Germany. It covers a broad range of topics, from legal questions to the economic aspects of property management. For members, the initial consultation is often free of charge.
Practical check: What concrete support does Haus und Grund offer?
The Haus und Grund associations offer their members a wide range of advisory services. A key focus is tenancy law, for example when drawing up legally compliant tenancy agreements or resolving disputes with tenants. Often, three in-person 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. In addition, members receive support with flat ownership law, for example on questions relating to owners’ meetings or the use of common property. Many associations also provide forms and sample templates that reduce the administrative burden for owners. The costs of special services that go beyond basic advice are set out transparently. A comprehensive consultation is the first step towards minimising risk.
Essential protection: The most important insurance policies for homeowners
Besides sound advice, the right insurance cover is essential. The buildings insurance is a must for every homeowner and covers damage caused by fire, water leaks, storm and hail. In the event of a claim, it covers the cost of repairs or rebuilding at replacement value. The contents insurance protects movable possessions such as furniture and electrical appliances against similar risks. For rented properties, landlord liability insurance is essential, as private liability insurance often does not apply here. It protects against third-party claims, for example if a passer-by is injured on the property. The difference between buildings insurance and contents insurance should be clear to every owner.
Additional protection against natural hazards
The natural hazards insurance is becoming increasingly important in light of the rise in extreme weather events. It covers damage caused by heavy rain, flooding, snow load or earthquakes and is usually offered as an additional module to buildings or contents insurance. According to media reports, around half of property owners in Germany are still not insured against natural hazards, although compulsory insurance is being discussed. Some federal states such as Baden-Württemberg even had compulsory insurance in the past, which is why insurance penetration there is significantly higher at 94 per cent.
Expert depth: legal aspects and current developments
In tenancy law, there are constantly new rulings that are relevant for landlords. For example, on 23 October 2024, the Federal Court of Justice (BGH) (case no.: VIII ZR 106/23) ruled that a tenant’s payment within the grace period can avert an immediate termination, but does not affect an ordinary termination issued at the same time. This underlines the need to handle termination procedures precisely. Another ruling from 10 July 2024 (case no.: VIII ZR 184/23) states that landlords may also set off time-barred claims for damages against the tenant’s claim for repayment of the deposit. Our expert tip: Always document all procedures and damage in detail so that you can assert your claims in the event of a dispute. The landlord legal protection insurance can be valuable support in this regard.
The debate on mandatory natural hazard insurance
The introduction of a nationwide compulsory insurance scheme for natural hazards is being discussed intensively. The aim is to provide broader protection for the population against natural disasters and to relieve the public sector in the event of major losses. Federal Minister of Justice Stefanie Hubig announced that, for new contracts, residential building insurance policies should in future only be offered with natural hazard cover. Such a compulsory requirement has existed in France for many years. For property owners, this potentially means higher costs, but also more comprehensive protection. It is advisable to review your own insurance situation at an early stage and, if necessary, make adjustments before any legal regulation comes into force. Many people ask: Do you need buildings insurance? It is not always legally required, but in practice it is indispensable.
Special case: letting – which policies are also important?
Landlords bear particular risks that go beyond protection for owner-occupied property. Landlord liability insurance is essential to protect against third-party claims for damages arising on the rented property or in the building. Think of the classic case of a tenant slipping in the stairwell. In addition, landlord legal expenses insurance is often worthwhile. It covers solicitors' and court costs in disputes with tenants, for example over rent arrears, notices to quit for owner occupation, or service charge statements. These costs can quickly run into several thousand euros. Rent loss insurance can also cushion financial losses caused by tenants who are unable or unwilling to pay. An overview of which insurances a landlord needs helps with choosing the right cover.
The following insurance policies are particularly relevant for landlords:
Home and property owners' liability insurance (often also called landlord liability insurance)
Landlord legal expenses insurance
Residential buildings insurance (if applicable, with natural hazard cover)
Rent loss insurance (optional, but worth considering)
Our expert tip: Regularly check whether your insurance cover is still up to date and covers all specific risks associated with letting out your property. Advice from insurance experts, such as that offered by nextsure, can provide clarity here.
Digital tools and advice: Your path to optimal protection
Digitalisation offers property owners new ways to get informed and protect themselves. Online comparison portals make it possible to gain an initial overview of insurance tariffs. However, for a tailored solution that takes your individual situation and the specific risks of your property into account, personal advice is often essential. As a digital insurance portal, nextsure combines comprehensive niche insurance products with expert advice. This enables you to ensure that you are neither underinsured nor overinsured and enjoy optimum protection in the event of a claim. An individual risk analysis can reveal gaps in cover and identify potential for optimisation. Property owner liability insurance is just one building block among many.
More useful links
Haus & Grund is the German association of private property owners and landlords and offers comprehensive information and advice.
The Federal Statistical Office (Destatis) provides up-to-date data on construction prices and property 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 construction and property financing.
Wikipedia provides an overview of the history and structure of the Haus & Grund association.
The German Energy Agency (dena) provides comprehensive information about the energy certificate and its significance for properties.
The Federal Ministry of Finance explains the rules on property tax and real estate transfer tax.
FAQ
How often can I make use of the free legal advice at Haus und Grund?
The scope of the free legal advice depends on the respective Haus & Grund association and the amount of the membership fee. Often, for example, three in-person and three telephone consultations per calendar year are included.
Is natural hazard insurance automatically included in buildings insurance?
No, natural hazard insurance is usually an optional add-on and must be explicitly added to either buildings insurance or contents insurance. It is important to check this when you take out the policy.
What happens to the buildings insurance when selling a house?
When selling a house, the existing residential building insurance usually transfers to the buyer. However, the buyer has a special right of cancellation and can either take over the policy or cancel it and take out a new insurance policy.
Which recent BGH rulings are particularly important for landlords?
Important recent judgments concern, for example, the validity of ordinary notices of termination despite payment within the grace period in the case of rent arrears (BGH, case no.: VIII ZR 106/23) and the offsetting of time-barred damages claims against the security deposit (BGH, case no.: VIII ZR 184/23).
Do I also need landlord liability insurance as the landlord of a single apartment?
Yes, even as the landlord of a single apartment, homeowners’ liability insurance (often referred to as landlord liability insurance) is highly recommended, as private liability insurance usually does not cover damage related to letting property.
How can nextsure help me as a property owner?
As a digital insurance portal, nextsure offers access to specialist insurance and tailored cover solutions. We support you with expert advice and an individual risk analysis to find the optimum insurance cover for your property and close any gaps in cover.
