Does the landlord insurance cover the legal costs

Legal protection insurance in tenancy law

When does the
Legal protection insurance costs
in tenancy law?

Claims settlement by the legal protection insurance in tenancy law

First things first: tenancy law is not covered by general legal protection insurance! So you only have insurance coverage if you have Problems with tenancy law additionally insured to have.

The second most important thing immediately afterwards: In tenancy law is the Legal protection strictly object-related! Insurance cover only applies to the apartment that is specified in the legal protection insurance policy. So if you live in an apartment as a tenant and rent out a condominium as a landlord, you only have insurance coverage for legal problems with one of these two apartments. You should check which of these apartments is insured. You can have both apartments included in the legal expenses insurance, but this of course increases your contribution.

If the policyholder moves and the tenancy of the old apartment is terminated, the insurance cover is automatically transferred to the new property. It will come after moving to a legal protection case in connection with the old tenancy is the Legal protection insurance but still for claims settlement subject to entry. In this special case constellation, two different apartments are covered by insurance.

Legal protection in tenancy law can be agreed for both landlords and tenants of apartments.

When does insurance cover under tenancy law begin and when does it end?

Insurance coverage usually begins after one Waiting period of three months from the conclusion of the contract. This means: All legal problems that have their origin before the contract is concluded or that originate in the (mostly) three-month waiting period are not covered by insurance cover and claims settlement! So there is no point if the tenant quickly takes out legal protection insurance after finding his landlord's notice of termination in the mailbox.

Where the "origin" of a legal problem lies (or: when) can be difficult to determine in individual cases. The BGH focuses on an "actual, objectively ascertainable process" that "carries the seeds of a legal conflict". Example: If the tenant receives three warnings and then the notice of termination, the origin of the legal problem according to the more recent BGH rulings does not go hand in hand with the time of the warning, but is to be located at the time of receipt of the notice of termination. Although the warnings prepare the termination, it is only the declaration of termination by the landlord himself that causes the legal conflict and against which the tenant defends himself. According to the latest BGH case law, the decisive factor for the origin of the legal problem is which legal violation the policyholder accuses his opponent of - and that is not the warnings here, but the pronouncement of the termination. If the first warning has been issued, the tenant can still take out legal protection insurance if he expects a notice of termination in the future.

In the cases alleged structural defects in the rental property (Mold, asbestos, lack of soundproofing, etc.) the origin of the legal conflict, contrary to the unfortunately often encountered opinion of legal protection insurance, does not lie at the time of the conclusion of the rental contract! The tenant does not accuse the landlord of renting a defective apartment to him years ago, but that the landlord is now failing to remedy the defect. In these cases, legal protection insurance companies often ask when the mold should have appeared for the first time. But this is not the point! The insurance companies are only looking for excuses so as not to have to pay.

Describe the breach of duty in a tactically wise manner

But that also means that the lawyer has to pay close attention to what he is calling Indicates breach of duty. The lawyer must focus on the current violation, as otherwise he may deprive his client of insurance cover. If the client has been insured for twenty years, of course, that doesn't matter so much.

The assertions of the opponent are not relevant for the temporal location of the origin of the legal problem according to the most recent BGH case law. This also applies if the policyholder is sued.

Ultimately, it is also not decisive whether the insurance contract still exists at the point in time at which the policyholder engages a lawyer or takes legal action in court. It only depends on whether the insurance was still liable to take effect at the moment in which a legal violation is supposed to have been committed, i.e. in which the origin of the legal problem must be seen.

The legal protection insurances are understandably not happy with this BGH ruling. The General Conditions for Legal Protection Insurance (ARB) are therefore currently being revised by many legal protection insurers. The aim of the whole thing is to push back the origin of the legal problem in order to avoid having to act in as many cases as possible. However, such changes cannot be made in existing insurance contracts! So remember: the older an insurance contract, the better and more comprehensive the insurance cover!

Insurance cover and the assumption of costs only exist in the event of breaches of duty

For general Advice or information there are too vague fears that lease contracts will be examined without a specific reason or that terminations due to personal use by the landlord and the like exist never insurance coverage. There are no violations by the opposing party or violations by the policyholder alleged by the opponent. So there is no legal problem in the insurance sense. However, if the landlord has given notice of termination for personal use and the tenant refuses to move out of the apartment, the legal violation has occurred (refusal by the tenant). There is therefore again insurance cover for the landlord's eviction action.

The most important points again:

  • Check whether rental law is covered by the insurance. If in doubt, ask your insurance company.
  • Has the waiting period (usually three months) already passed?
  • Is there a violation of the law?
  • Does your legal problem originate from the time you had insurance coverage?
  • You yourself have an influence on this temporal location: Focus on the current violation!
  • Don't just let your legal expenses insurance get rid of you! The employees there are often instructed to try that first.

The request for confirmation of insurance coverage (coverage request)

The so-called Cover request is usually carried out by your lawyer as a service for you. Actually, that would be a separate order that would also have to be paid for separately. In order not to scare clients off, most lawyers conduct correspondence with their clients' legal expenses insurance free of charge.

But note: Usually the lawyer begins his work at the same time. If, in retrospect, it turns out that there was actually no insurance cover, you will have to pay the lawyer yourself. In the case of cost-intensive mandates in particular, it is therefore advisable to first clarify whether the Insurance will cover the costs is given and to make the beginning of the legal activity dependent on it.