Federal Court of Justice ruling – Landlord liable for fire damage in rented apartment

Who pays if a tenant negligently causes damage in the apartment? The Federal Court of Justice in Karlsruhe had to decide on this question today. In their ruling, the judges strengthened the tenants' position: The landlord has an "unconditional duty" to remedy the defects.

The case in question dates back to 2012. The tenants' then 12-year-old daughter carelessly caused a fire. While cooking, hot oil in a pot caught fire. The resulting smoke damaged the walls and ceilings of the kitchen, as well as other rooms such as the bathroom. The damage amounted to €8,000

The tenants duly notified their liability insurance company. However, the insurance company pointed out that the building insurance of the housing association, which owns the apartment, was responsible. The association refused to report the incident, arguing that this would lead to higher insurance premiums. Furthermore, they maintained that the tenants had caused the damage and were therefore liable. The tenants disagreed and filed a lawsuit. In addition to claiming damages, they sought a rent reduction due to the defects caused by the fire.

Federal Court of Justice: Building insurance is liable

The Federal Court of Justice (BGH) has now ruled that this is justified. A tenant is entitled to expect the landlord's building insurance to cover the damage. After all, the tenant contributes to the insurance costs. Furthermore, the judges stated that the landlord has "no reasonable interest in pursuing the tenant instead of the insurance company." The BGH also upheld the rent reduction: the fire damage constitutes a "defect in the rented property that impairs its contractual use."

(Case No. VIII ZR 191/13)