Key takeaways

• Tenant legal protection insurance covers the costs of legal disputes related to the rental property you live in.
• Tenant legal insurance has a waiting period of 3 months. It doesn’t cover the disputes that arise during the waiting period.
• Legal insurance costs between 176 € and 330 € per annum.
• Tenants’ associations offer all the out-of-court services at a very low membership fee. Hence, taking a tenants’ association membership is advisable.

This is how you do it

• If you are unhappy with your landlord or the neighbors, get a legal protection insurance policy as soon as possible.
• You can compare the legal insurance offers on Check24* or Verivox*. If you want a service in English, check Getsafe* legal insurance and Feather*.
• Get a tenants’ association membership for immediate support without a waiting period.

Table of Contents

What is tenant legal protection insurance (Mietrechtsschutz)?

Tenant legal protection insurance is a type of legal insurance in Germany (Rechtsschutzversicherung). It covers the legal costs incurred during a legal dispute.

The legal dispute must be related to the rental property you live in. It can be with your landlord, neighbor, municipal authorities, etc.

NOTE: Legal protection insurance for tenants can only be taken out in conjunction with the private legal protection module.

Is tenant legal insurance worth it in Germany?

Yes, tenant legal insurance is worth it. Not only does it cover your legal expenses, but it also offers legal advice for free.

Hiring a lawyer is not cheap in Germany. The minimum initial consultation fee of a lawyer is 190 € plus VAT.

And if the dispute went to court, the legal costs could be in thousands of euros. Moreover, you must pay the opponent’s legal fees if you lose.

Legal insurance covers the legal costs even if you lose. Hence, having legal insurance is highly recommended.

You can compare the legal insurance offers on Check24* or Verivox*. If you want a service in English, check Getsafe* legal insurance and Feather*.

Here are some statistics

• As of 2022, 23.4 million legal protection insurance contracts exist in Germany [1]. So, around 25% of the German population has a legal insurance policy. [2]
• There are 850k advice cases with the tenants’ associations (Mieterverein in German). [3]

What does tenancy legal insurance cover in Germany?

Here are some practical examples where tenant legal insurance can help.

• The landlord increased the rent.
• The utility bill contains amounts that you don’t understand.
• The landlord terminates the rental agreement suddenly.
• The rental property has defects like mold, broken heating, etc. So, you want a rent reduction till it’s fixed.
• The landlord is not returning the security deposit.
• Dispute with municipal authorities over garbage disposal.

Here are the legal costs legal protection insurance covers.

• Tenancy law advice: in person and on the phone.
• Free document checks like rental agreements, utility bills, etc.
• Mediation, if agreed
• Lawyer’s fee
• Court costs such as witness fees, bailiff costs, and costs for experts and appraisers
• Costs for arbitration or conciliation proceedings (up to the first instance)
• Costs of the other party, if necessary.

You must pay the deductible if your contract has one. And the insurance provider will cover the rest.

You must get a written confirmation of coverage from your insurance company before hiring a lawyer. The letter confirms that the insurance company will cover the costs of the legal dispute.

What is not insured under tenant legal protection insurance?

• Disputes arose before the tenant’s legal insurance was concluded is not covered.
• Disputes during the waiting period are not covered. Tenancy legal insurance usually has a 3-month waiting period.
• Legal insurance companies may refuse to pay if the chances of winning the case are slim. The insurer can even refuse to pay if they think you are filing a case out of personal vendetta.

So, to avoid any conflicts with the insurer regarding coverage, always get a written confirmation of coverage before hiring a lawyer.

How much does tenancy legal insurance cost in Germany?

You can get tenancy legal insurance as part of the private legal insurance only. The cost of the tenant legal protection insurance depends on

• Number of people insured – single, couple, or family.
• Your occupation
• Whether you have or had a legal insurance policy.

Here is the cost of tenant legal insurance in different scenarios.

	Single	Couples or Families with kids
Employee (€ per annum)	176 € to 250 €	196 € to 330 €
Self-employed (€ per annum)	176 € to 330 €	196 € to 330 €
Student (€ per annum)	176 € to 250 €	196 € to 330 €

Source: Verivox as of March 2024

You can take a higher deductible to lower the insurance premium. A deductible is the amount you must pay from your pocket, and the insurer will cover the rest.

There is a waiting period of 3 months. The insurer will not cover the costs of the disputes that arise during the waiting period.

However, some insurance providers offer coverage without a waiting period. You can get such legal insurance policies for the tenant law only. You don’t need to take the private legal protection component.

However, such tenant legal insurance tariffs are expensive (300 € to 650 € per annum). And you have to agree to a term of three years.

What should a good tenant legal insurance cover?

A good legal insurance for tenancy law should cover the following.

• Consultation with a lawyer on the telephone should not be relevant to contract termination.
• Lawyer’s and court fees
• Cover the mediation costs
• If you have a second home, that should also be insured.
• Subsequent event theory (cause before the start of insurance).

In addition, the tariff in the area of ​​private law should meet certain criteria. We have explained it in detail in the legal protection insurance guide.

Subsequent event theory (Folgeereignistheorie) 

Legal protection insurance generally offers protection for future conflicts. However, the occurrence of the damage and the cause of the damage can be at different times. 

It may occur that the damage happened after you took the insurance. But the cause for the damage happened before you took the insurance.

In this case, legal insurance companies don’t cover the costs. However, if your legal insurance contract has a “subsequent event theory” clause, your insurer will also cover such disputes. 

For example: You got injured in a train accident. You had the legal insurance when the accident occurred. But the cause of the accident is identified as a production error.

The production error occurred before you took the legal insurance. In this case, the legal costs are covered if your contract has a “subsequent event theory” clause. 

Thus, ensure your legal protection insurance policy has a “subsequent event theory” clause.

Best tenant legal insurance in Germany

You can compare the legal insurance offers on Check24* or Verivox*. If you want a service in English, check Getsafe* legal insurance and Feather*.

Tenant Protection Association (Mieterverein)

There are several tenants’ associations in Germany. Tenant associations offer all the out-of-services that legal insurance provides at a very low cost.

You can become a member of any local tenants’ association. And get immediate support with your problem. 

Here are the benefits of a tenants’ association.

• No waiting period
• Low cost between 50 € and 100 € per annum.
• All out-of-court services for free. For example, send a letter on your behalf, get legal advice on the phone, etc.
• You can connect with other members and exchange information.
• The tenants’ association also offers several member-only products like discounted legal insurance, monthly magazines, etc. 

References

• https://www.deurag.de/vertriebspartner/digital-content/folgeereignistheorie/
• https://www.devk.de/produkte/rechtsschutz/wohnungsrechtsschutz/mietrechtsschutz.jsp
• https://www.check24.de/rechtsschutzversicherung/mietrechtsschutz/
• https://www.verivox.de/rechtsschutzversicherung/mietrechtsschutz/
• https://www.finanztip.de/rechtsschutzversicherung/mietrechtsschutz/