Legal expenses insurance for property owners

What is it?

Legal expenses insurance for property owners is a specialized form of coverage that deals with legal disputes related to property ownership. This insurance emerged as a response to the increasingly complex legal landscape surrounding property rights, tenant issues, and neighborhood disputes in Germany.

Initially only aimed at larger property developers and landlords, the market has evolved to include policies made for individual homeowners. Today, this insurance product can cover a wide array of legal scenarios ranging from disputes with tenants to conflicts with construction companies.

What are the benefits?

By law, a standard package of legal expenses insurance must cover the basics, and currently most insurance carriers cover the following costs:

  • Lawyers’ fees and court costs
  • Criminal bail
  • Expert’s fees
  • Costs of mediation
  • Costs of legal advice by telephone

Additionally most insurance carriers offer further benefits such as “lawyer hotline”, where you can get an initial assessment of your case as well as immediate legal advice on the phone from specialized lawyers.

 Good to know: 

The legal expenses insurance for property owners has a waiting period of three months and almost always comes with a co-payment. Unlike other types of insurance that operate on a reimbursement model, legal expenses insurance generally operates on a “direct payment” principle. This means that the insurance company directly settles the legal costs with the service providers, easing the financial burden on you.

Who is it for?

The target audience for legal expenses insurance for property owners is broad. It can range from individual homeowners worried about potential legal issues with neighbors to large-scale landlords dealing with constant tenant turnover and associated legal risks. Your premium is influenced by factors like the type and location of the property, as well as the breadth of coverage you desire.

Did you know?


Estimate number of tenancy disputes in court in Germany in 2019. [1]