Disputes about your own home often end up in court. For tenants with rental protection insurance, this covers the legal costs. But there is a much cheaper alternative to private legal protection.
By Mia Pankoke
In some major German cities such as Cologne, Berlin or Munich, rent costs more than 35 percent of an average family’s net income. In such already financially strained cases, a rent increase can lead to considerable burdens. Nevertheless, landlords are allowed to charge more under certain circumstances, such as after modernization measures.
There are restrictions: For example, the rent increase must not be unreasonable for the residents. But what does unreasonable mean? And what is considered modernization and what is considered maintenance? Disputes quickly arise between landlords and tenants over questions like these, which often end up in court.
According to the German Tenants Association (DMB), the most common disputes in tenancy law matters are breaches of contract, such as animal husbandry, housing defects or rent control procedures. These disputes account for around 30 percent of court cases. In second to fourth place, the topics of rental deposits, additional costs and rent increases are almost tied. Such processes can quickly become very expensive for the losing party: According to the consumer advice center, the losing party in the termination dispute and with a monthly rent of 700 euros will incur around 4,600 euros in costs. These are costs for the court, your own lawyer and the opposing lawyer.
Rental legal protection makes contracts more expensive
If you want to protect yourself from such a financial burden, rent protection insurance could be interesting. Such rental legal protection is usually available in conjunction with general private legal protection insurance. Tenants must also select the “living” insurance module, which often makes legal protection insurance a lot more expensive.
In addition, tenants must obtain a so-called confirmation of coverage so that their legal protection insurance actually covers the legal fees and court costs. This is a promise about the scope of protection in the event of a dispute. Anyone who doesn’t do this – or only after a lawyer has already been hired – runs the risk of the insurance company refusing to pay. Tenants also need to be careful in disputes that began before the contract was signed or during the waiting period until the insurance began. Insurance coverage often only takes effect three months after the contract is concluded.
Tariffs cost on average from 250 euros and up
At HUK-Coburg, the costs of private and professional legal protection insurance, including the rental legal protection component, amount to around 272 euros annually. This includes a deductible of 150 euros and a three-month waiting period. The usual disputes that affect residential units in Germany are covered, for example around garage parking spaces or terminations for personal use. In total, the annual costs in the case of HUK-Coburg are 258 euros. The private legal protection tariff including real estate protection at Arag costs a similar amount, namely 22.95 euros per month or around 275 euros per year.
A few insurers offer so-called immediate protection. This is a little more expensive, although it only covers tenancy law matters. This is because there is no mandatory three-month waiting period and policyholders receive immediate help – even if there are ongoing disputes about rent increases, terminations for personal use or if the landlord demands money for repairs. Disputes relating to mold or construction defects are not insured. Immediate protection with Arag insurance costs 25.11 euros per month or more than 300 euros per year.
Tenants association as an alternative
Compared to comprehensive private legal protection, membership in a rental association or tenant protection association is often a cheaper alternative. This is interesting for anyone who specifically wants to protect themselves against tenancy disputes. Membership in the MHM tenants’ association in Hamburg, for example, costs 70 euros per year. First of all, this includes short-term advice from lawyers, without any waiting time.
In order for the tenants’ association to cover the legal costs, members must also pay for all-round protection. At MHM this is available for an annual surcharge of 35 euros, with no deductible. This means that the annual costs for membership in the tenants’ association amount to a total of 105 euros.
“For tenants, housing is often about existential questions,” emphasizes Rebekka Auf’m Kampe from MHM. “It is important to get good legal advice and many disputes can then be easily resolved out of court,” says the lawyer. “Members not only support political concerns of renters, but also provide advice for those who are financially weaker.”
This article appeared first which, like stern, is part of RTL Deutschland.
Source: Stern
