Protection of legal costs
MhM has taken out an inexpensive legal expenses insurance policy for its members with ALLRECHT, which offers cost protection in rental proceedings in court against landlords*. Our insurance policy covers all members who have registered in writing with the association for group insurance.
The legal costs insurance costs 29 € per year in addition to the membership fee.
Please also note the conditions listed below, which must be fulfilled in order for your dispute to be covered for legal costs. If you have any questions about legal protection, we will be happy to help you at our head office. Please remember that legal expenses insurance does not apply if you are in arrears with your premiums.
1. Insurance conditions
The scope of the insurance cover is determined by the group contract and the "Allgemeine Rechtsschutzbedingungen" (ARB 2000) of the German insurance industry. The most important provisions are:
- The object insured is the domestic accommodation unit (flat, house, or room) rented and occupied by the member himself/herself at the address registered with MhM. Important: Only the flat that has been registered with MhM as the object of insurance is considered insured. If you move, please notify us immediately of your change of address, otherwise, insurance cover may be cancelled. For commercial tenancies, insurance cover can be taken out with MhM at special conditions. If you are interested, please contact MhM headquarters. If you live in several rented flats, you can take out further membership and legal expenses insurance for a total of € 94.
- Insured disputes are disputes under tenancy law with the landlord*in (e.g. termination and eviction, rent increases, repair of defects). Not insured are disputes with subtenants, authorities, and estate agents. If main and subtenancy relationships exist, only the main tenant can get insured. Of course, subtenants can become members of MhM and receive legal advice in case of problems with the landlord* of the flat. However, legal protection insurance for subtenants is only valid for their own contractual partners, i.e. for the main tenant.
- Insured persons of the flat are the registered members of MhM. Other main tenants and flatmates are also insured in the same lawsuit, provided they are represented by the same lawyer. However, the minor additional costs incurred by the representation must be payed by the tenant.
- Scope of insurance: For each case of legal protection, benefits of up to € 100,000 are covered. The insured member has not to pay a self-participation. The insurance cover includes the protection of interests in court with lawyer, court, and expert costs. Not insured is the extrajudicial activity of a lawyer, for this purpose the legal advice of MhM is available.
- Waiting period: As with other legal protection insurance policies, there is a waiting period of three months from the date of registration for group insurance (date of receipt by MhM). Legal protection exists for all claims that arise after this period. A claim is defined as the event which is to be regarded as the cause of the legal dispute (example: in the case of a claim for repair and rent reduction, the time at which the defects first occurred). It is therefore the point in time when the cause of the legal dispute arose, not when the lawsuit is brought.
- As soon as a legal dispute is foreseeable, our members are obliged to seek advice from MhM and, if necessary, to be represented by MhM (see below 'In the event of damage')
2. Transfer of legal protection
MhM membership is generally non-transferable. A transfer of legal protection is possible in the following three case constellations:
- The member dies and the co-tenant, partner, or heir continues the tenancy and becomes a member of MhM.
- The member resigns from the Tenants' Association and another main tenant of the flat becomes a member.
- The member moves out of the flat without giving up the membership and legal protection. In this case, the legal protection can be transferred to the main tenant who remains in the flat if he becomes a member. The legal protection of the former member does not expire through this.
In the aforementioned cases the successor member shall receive the same legal protection as the former member would have received. In this way, claims arising from the period prior to the transfer may also be insured.
Observe the deadline: The transfer of legal protection is only possible if the Tenants' Association receives the declaration of the accession of the successor (only main tenant!) to the Tenants' Association and the legal protection within three months of the death, resignation, or change of residence. The transfer must be applied for by the newly joining member within these three months. Proof of the requirements (death, move-out, resignation) must be provided. The new member will receive a confirmation from MhM and must himself/herself point out the transfer when applying for legal protection, as otherwise the insurance will be based on the three-month waiting period.
3. In case of damage
- Before taking legal action, i.e. filing or warding off a lawsuit, you must seek advice on legal protection from a MhM lawyer at the MhM head office in Bartelsstraße 30 (see no. 6 of the insurance conditions). If you fail to comply with this obligation, you risk losing your insurance cover. You can arrange this consultation appointment at short notice by telephone. Please bring all written rental documents with you to the consultation.
- Afterwards, you will appoint a lawyer yourself. You are free to choose your own lawyer; however, due to the complexity of the matter, we strongly recommend that you engage lawyers who are experienced in tenancy law. We will be happy to help you with the selection.
- The application for legal protection should be addressed to MhM. A copy of the statement of claim and, if applicable, a copy of the statement of defence should be sent with the application so that the insurance company can determine the facts and the time of damage from the documents. We will forward the application with the confirmation of your membership to the insurance company, which will then inform your lawyer directly.
4. Duration of the insurance
The legal protection ends automatically if you have left the tenants' association or are in arrears with contributions. You can also remain a member of MhM and only terminate your legal protection. Withdrawal from legal protection is possible with a two-month notice period before the 31st of December (a receipt of the written declaration at MhM headquarters by October the 31st at the latest). As with other legal expenses insurance policies, ALLRECHT insurance can terminate a member's legal expenses cover with one month's notice if it has granted cover for at least two claims from a calendar year.
as of August 2020
If you have any questions about legal protection, please do not hesitate to call us: