Transfer Building Insurance to Renters: Can a Landlord Do That?

Costs are prorated, unless otherwise stipulated in the rental agreement, according to living spacethat your tenants use.

  • Example: Suppose you rent an entire three-story house and pay $200 a year for homeowners insurance. Ground-floor and first-floor tenants each occupy 40 percent of the space, and top-floor tenants occupy the remaining 20 percent. Then the penthouse occupant pays 40 euros a year, while the other two tenants pay 80 euros each.

The reason you are allowed to split your homeowners insurance is simple: Renters also benefit from this insurance. Because the faster the landlord has the money to repair the damage, the faster tenants can get back to living in their own four walls. In addition, most residential buildings insurance policies also cover hotel accommodation costs, which means that the tenants in question do not have to sleep on the couch with relatives.

What should homeowners pay attention to when transferring homeowners insurance?

As a landlord, you can only pass on the costs to the tenants that you mentioned in the rental agreement. Of course, you don’t have to list each item individually. It is sufficient if you refer to the operating costs statutory ordinance, which includes residential buildings insurance among the apportionable ancillary costs. If you forget to mention the operating costs in the rental agreement, the tenant does not have to pay any of them either.

Important: On the annual utility bill, you shouldn’t just show insurance costs under “Other,” but should refer to them explicitly as “Insurance.” In addition, tenants have the right to inspect the corresponding receipts. Read here when the utility bill is due.

What is the cost of building insurance?

Homeowners insurance offers sometimes differ greatly, both in price and in terms of terms. Therefore: Owners cannot take out policies that are not in the interest of renters or even put them at a disadvantage. Therefore, the lessor has to compare offers and pay attention to the correct cost-benefit ratio.

Because if the insurance premium covers the costs of comparable residential construction insurance exceeded by more than 20 percentthe tenant does not have to bear the excessive costs, the Bad Salzungen District Court ruled in 2005. Cheap but reasonable rates – including protection against natural hazards – for a new house with around 140 square meters of living space are available from 150 to 200 euros

Tenants can view contracts

Tenants can request that landlords give them the Submit insurance contracts. If the home insurance contract is older and newer, there are now more attractive offers on the market, it may also be the case that the old contract has to be canceled and replaced with a new offer.

If building insurance is included in the utility bill, it must be correctly accounted for be. The declaration “other additional costs” in the declaration is not enough. However, the term “safe” is sufficient. This is how the recipient of the ancillary costs declaration can see that these are insurance costs.

Tenants have the right to consult the corresponding receipts to learn more about the contributions. Therefore, according to a decision of the Federal Court of Justice (BHG), the insurance costs do not have to be itemized more precisely in the declaration of ancillary costs (AZ VIII ZR 346/08).


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