It is an important thing for tenants and landlords: Building insurance in the ancillary costs. Anyone who owns an apartment building or is a member of a community of owners is generally aware of the importance of reliable building insurance. They have invested a lot in their property. And these sometimes very large assets need to be protected.
An apartment building with several parties is something different from a self-occupied home. This also applies to insurance cover. HDI residential building insurance for multi-family houses is specially designed to cover the special features of rented real estate.
The residential building insurance is taken out by the owner of the building. However, its occupants also benefit directly from the benefits of the policy. It is therefore perfectly legitimate for the landlord to pass on the premium for the building insurance to the tenants via the ancillary costs. However, there are a few rules to be observed; because tenants also have certain rights if it concerns the insurances of the landlord for their at home.
Transparent service charge settlement obligation for landlords
If the building insurance is included in the service charge settlement, it must be shown correctly. It is not sufficient to specify “other service charges” in the settlement. The term “insurance”, on the other hand, is sufficient. This is because the recipient of the service charge statement can see that these are insurance costs. Tenants have the right to inspect the relevant receipts in order to obtain detailed information about the premiums.