House and Landlord Liability Insurance: Specific Examples of Damages and How to Avoid Costly Liability Pitfalls
15 May 2025
6
Minutes
Katrin Straub
CEO at nextsure
A loose roof tile, an icy pavement – as a property owner, you are quickly liable for third-party damages. Discover through real damage examples why homeowners' liability insurance can be essential for survival and how you can optimally protect yourself.
The topic in brief and concise terms
As a property owner, you are liable for any damage caused to third parties by your property; therefore, a home and landowner liability insurance is often essential.
Typical claims include falls due to poor winter maintenance (costs often exceed €9,000), damage from falling building parts or toppled trees (costs often exceed €3,000).
Statutory liability is based, among other things, on § 836 BGB (building collapse, inadequate maintenance) and § 823 BGB (general duty of care).
The underestimated danger: An overview of typical cases of damage
Many property owners are not aware of the full liability risk associated with their ownership. A moment of inattention or an overlooked defect can already lead to substantial compensation claims. Home and landowners' liability insurance steps in right here. It is essential for owners of rented properties, undeveloped land, and property owners' associations.
A classic example is a pedestrian falling on an uncleared sidewalk in winter. Here, claims can quickly arise for over 9,000 Euros for medical costs and pain and suffering. Falling roof tiles that damage a parked car are also not uncommon. Such incidents highlight how quickly a damage can threaten one's financial existence.
The insurance examines the liability issue, defends against unjustified claims, and covers the costs of justified demands. This provides an important protective shield. In the following, we take a closer look at specific risk areas.
Winter Service: Duties and Liability Risks with Snow and Ice
The obligation to clear and grit during winter is one of the most common causes of liability cases for homeowners and property owners. As a property owner, you are fundamentally responsible for the safety of the pavements on your property. This duty can often be transferred to tenants via the rental agreement, but you retain a duty of supervision and control.
Negligence can become costly: If a pedestrian falls due to ice, the claims, including compensation for pain and suffering and loss of earnings, can quickly reach five-figure sums. A judgement by the OLG Hamm awarded a tenant who had fallen due to a broken stair step 8,000 euros in compensation for pain and suffering, because the landlord had neglected their duty of control. The homeowner's and landowner's liability insurance covered this damage.
Pay attention to the municipal statutes, which usually set the winter service periods from seven in the morning until eight in the evening. The Federal Court of Justice (BGH) has also specified that not every isolated icy spot, but rather a 'general formation of ice' triggers the gritting duty. A solid private liability insurance is an important supplement here, but it does not cover all risks for landlords.
Tree on Neighbour's Property: Who Pays for Storm Damage?
A falling tree can cause significant damage to the neighboring property. The question of liability critically depends on the condition of the tree and the cause of the fall. If the owner has violated their duty to maintain safety, for example, by not adequately securing or felling an obviously sick or rotten tree, then they are liable for the resulting damage. Such a case can quickly lead to repair costs of, for example, 3,400 euros if branches fall on the neighboring building.
The duty for regular tree inspection arises from § 823 BGB. Here are some aspects regarding tree care and liability:
Regular visual inspections for stability and deadwood are essential, at least twice a year (with leaves and without).
If damage is suspected, an expert (tree inspector or arborist) should be consulted.
Carefully document conducted inspections and maintenance measures.
If a healthy tree falls due to force majeure (e.g., a storm with wind strength eight), the building insurance of the affected neighbor generally covers it.
Liability insurance for homeowners steps in if a breach of duty by the tree owner can be proven. It then covers the costs for personal and property damage. Without this protection, the financial consequences can be significant.
Landlords take note: Common sources of damage in rental properties
As a landlord, you bear a special responsibility under Article Fourteen of the Basic Law: "Ownership entails obligations." Damages caused to tenants or third parties due to defects in the rental property fall under your liability. Therefore, landlord liability insurance is a must. It is often included in property owner liability insurance or available as an additional module.
A common scenario is water damage caused by a broken pipe in the rented apartment, which damages the apartment below. Personal injuries are also relevant: If a tenant is injured by an electric shock due to a faulty electrical installation, the landlord is liable if they have neglected their maintenance duties. Such cases can result in medical costs, compensation for pain and suffering, and even pension payments.
Our expert tip: Conduct regular inspections of your rental properties and document them. Pay special attention to safety-relevant components such as electrical systems, water pipes, and stair railings. This not only helps prevent damage but also strengthens your position in the event of a liability claim. Knowing which insurances a landlord needs is fundamental here.
Legal Foundations: Paragraphs Every Owner Should Know
The liability of homeowners and property owners is clearly regulated in the Bürgerliches Gesetzbuch (BGB). Two sections are of central importance here. Section 836 BGB deals with the liability of the property owner in the event of a building collapse or parts detaching. This means that if, for example, roof tiles fall and damage a car, the owner is liable if the damage is due to faulty construction or inadequate maintenance.
The owner can only be exonerated if they prove that they observed the care required in traffic. This underscores the importance of regular inspections and maintenance measures. A well-known Federal Court of Justice (BGH) ruling concerned a fire caused by roofing work that spread to a neighbouring house, with the focus being on the owner's liability.
In addition, Section 823 BGB, the general obligation to pay compensation, is relevant. This section applies whenever someone culpably violates another's life, body, health, freedom, property, or any other right unlawfully. The breach of traffic safety obligations, such as the duty to grit, typically falls under this. A solid understanding of these basics helps in correctly assessing risks and recognising the need for comprehensive property and grounds advice.
Expert tips for risk minimization and optimal coverage
In addition to taking out a comprehensive home and property owner's liability insurance, you can do a lot yourself to minimise risks. A proactive approach not only protects against damage but can also positively impact your insurance costs. Here are some practical action recommendations:
Conduct a thorough inspection of your property and grounds at least twice a year. Pay attention to loose parts, cracks in the masonry, the condition of trees, and the functionality of lighting and pathways.
Document all inspections and maintenance or repair work carried out, carefully noting the date and including photos. This serves as important evidence in the event of a claim.
Regularly check that safety obligations (e.g., winter service, leaf removal) are reliably fulfilled, even if delegated to third parties. A random check is often sufficient here.
Ensure a sufficient insurance sum in your home and property owner’s liability policy. Experts recommend at least ten million euros to cover personal injury, property damage, and financial loss.
Inform yourself about specific risks such as oil tanks or photovoltaic systems and check whether these are covered by your insurance or require additional coverage.
Our expert tip: Have your existing insurance policies reviewed regularly, such as every three to five years, by an independent advisor. This ensures that your protection is still current and matches your situation. The question of why you need liability insurance should always be central to this process.
What to do in the event of damage? The right steps after an incident
Despite all precautions, damage can still occur. In such a situation, quick and correct action is crucial to limit the damage and facilitate handling with the insurance. Keep calm and proceed systematically. Document the damage immediately and comprehensively with photos or videos from different perspectives. Note the date and exact time of the incident as well as contact details of possible witnesses.
Report the damage to your home and property owner's liability insurance without delay. Most insurers offer a 24-hour hotline or an online portal for this purpose. Fill out the damage report truthfully and as detailed as possible. Do not acknowledge any liability without consulting your insurer. The insurance will first check whether and to what extent you are liable for the damage.
Provide first aid if people are injured and secure the site of damage to prevent further damage. For example, if a branch has fallen, you should cordon off the area. These initial measures are important before the insurer provides further instructions. The question of whether the private liability insurance increases in case of damage is relevant for personal liability, but the principle of reporting damage remains similar.
Costs and Services: What to Consider When Making Comparisons
More useful links
Wikipedia offers a comprehensive overview of homeowners' and landowners' liability insurance in Germany.
The Bund der Versicherten provides independent advice and information on homeowners' and landowners' liability insurance from a consumer perspective.
The VDIV (Verband der Immobilienverwalter Deutschland) publishes professional articles and publications addressing the duties and safety in property management.
The Federal Court of Justice (BGH) issues official press releases and judgements relevant to property owners and their liability.
The GDV (Gesamtverband der Deutschen Versicherungswirtschaft) provides extensive statistics and analyses on the German insurance industry, including data on claims development in residential building insurance.
FAQ
Is homeowners and property liability insurance legally required?
No, it is not legally required, but due to the unlimited liability of the owner for damages arising from their property, it is highly recommended and can be crucial for existence.
What is the approximate cost of homeowners and landowners liability insurance?
The costs depend on various factors, such as the type and size of the property, the number of housing units, and the desired scope of services. For a single-family home, annual contributions often start below 50 euros, while for multi-family homes, they are higher.
Can I pass on the costs of the homeowner's liability insurance to my tenants?
Yes, the costs for homeowner and landlord liability insurance can be passed on to the tenants as operating costs, provided this has been agreed upon in the rental contract.
What amount of coverage is sensible for house and property owner liability insurance?
Experts recommend a coverage amount of at least ten million euros as a standard for personal, property, and financial damages to ensure you are adequately protected even in the case of very large claims.
What is the difference with private liability insurance?
The private liability insurance covers damage caused by an individual to others. In contrast, the house and landowner liability insurance covers risks specifically associated with owning and renting out property and land.
What happens if I fail to fulfil my duty to maintain road safety?
If you violate your traffic safety obligations (e.g., winter gritting duty, building maintenance) and someone is harmed as a result, you are liable with all your assets. The homeowners' liability insurance covers justified compensation claims in such cases.
