Gross negligence in contents insurance: How to protect yourself against reduced benefits and ensure your home is optimally covered
01.05.25
7
Minutes
Katrin Straub
Managing Director at nextsure
A brief moment of carelessness can become costly. Find out what gross negligence means for your home contents insurance and how you can still enjoy full cover despite small mistakes. We’ll show you what matters.
The topic in brief and concise terms
Gross negligence exists where fundamental duties of care are disregarded to a significant extent; insurers may then reduce the benefit payable (§ 81 VVG).
Look out for tariffs with a “waiver of the defence of gross negligence” so that you can enjoy full insurance cover even if you make mistakes yourself.
Typical examples of gross negligence are unattended candles, washing machines left running when no one is home, or doors left unlocked.
Understanding Gross Negligence: Definition and Distinction
Gross negligence exists when the level of care required in traffic is breached to a particularly serious extent. It therefore concerns conduct in which one fails to consider obvious possibilities and disregards what ought to have been clear to anyone. A typical example is leaving the home while candles are burning unattended and causing damage amounting to several thousand euros. In contrast to ordinary negligence, which represents only a minor lapse in care, gross negligence is more serious. This is to be distinguished from intent, in which damage is deliberately caused or accepted; in such cases, no insurance will provide cover. The distinction is often decided on a case-by-case basis and can have significant financial consequences.
The legal basis: Section 81 of the Insurance Contract Act (VVG) and the proportionality principle
The German Insurance Contract Act (VVG) sets out in Section 81(2) the consequences of grossly negligent causation of the insured event. Unlike before the VVG reform in 2008, when the entire entitlement to benefits was often lost, the insurer may now reduce the benefit only in proportion to the severity of the fault. This principle is known as proportional reduction. The insurer bears the burden of proof for the existence of gross negligence and the extent of the reduction. A reduction of zero per cent is just as possible as a reduction of one hundred per cent in particularly serious cases. For you as the policyholder, this means a fairer arrangement, but still a financial risk. Suitable home contents insurance can provide security here.
Practical examples: When does it become critical for policyholders?
The range of grossly negligent actions is broad and often leads to discussions with the insurer. Here are some typical scenarios from practice:
Leaving the washing machine running unattended for several hours while away, which can lead to water damage of more than five thousand euros.
Leaving the flat, pulling the door shut but not locking it, which makes a burglary easier.
A window left on the latch during a prolonged absence, allowing burglars access or causing water damage in a storm.
Disposing of hot ashes in a flammable waste bin, which can cause a fire costing ten thousand euros or more.
Leaving candles burning unattended, especially on Advent wreaths or Christmas trees, is a classic example.
A faulty electrical appliance, whose defect is known, continues to be used and triggers a fire.
These examples show how quickly an everyday situation can become a problem with the contents insurance. Even a brief lapse in attention can be classed as gross negligence. A precise assessment of the individual case is crucial here.
Benefit reduction: How insurers determine the percentage
If the policyholder has caused the loss through gross negligence, the insurer will examine to what extent the benefit is reduced. The range extends from zero to one hundred per cent. Courts have already issued numerous decisions on this. For example, leaving a roof window ajar despite a storm warning can lead to a reduction of fifty per cent. In cases of very serious breaches that come close to intent, a reduction to zero is also possible, which amounts to a complete loss of cover. The exact amount of the reduction depends on the circumstances of the individual case, with both objective and subjective factors taken into account. Transparent communication with the insurer is important here. Also find out about the difference between buildings insurance and contents insurance, as similar principles may apply.
Expert insight: Current rulings and their significance
Case law is constantly evolving and refining the interpretation of gross negligence. A ruling by the Oberhausen Local Court considered a fifty per cent reduction in benefits justified when an insured person left a roof window ajar despite a storm warning, and damage occurred. The Federal Court of Justice (BGH) defines gross negligence as conduct in which the required care is breached to an unusually high degree and what should have been obvious to anyone in the specific case is disregarded. This definition leaves room for interpretation, which is why each case is assessed individually. Our expert tip: Document the sequence of events leading to the damage carefully and keep all relevant documents. This can be crucial in the event of a dispute, especially when it comes to the damage report to the insurer.
Important aspects in judicial assessment are often:
The recognisability and extent of the danger.
The personal circumstances and abilities of the person acting.
The presence of warnings or special circumstances.
The severity of the breach of duty of care compared with average conduct.
These factors are taken into account in deciding on the reduction percentage.
Protection against reduction: Waiver of the defence of gross negligence
Many modern contents insurance policies include a clause that offers policyholders a significant advantage: the “waiver of the defence of gross negligence”. If this waiver is included in the policy, the insurer will also pay up to the agreed sum insured even if the loss was caused by gross negligence. This provides comprehensive protection against financial losses. When taking out contents insurance, be sure to pay close attention to this clause. Our expert tip: Check the terms carefully, as sometimes the waiver only applies up to a certain amount of loss or excludes certain breaches of duty. It is always worth comparing different policies. Some insurers already include this important protection in their basic policies, while others offer it as an optional add-on.
To minimise the risk of a reduction in benefits due to gross negligence, you should observe a few basic rules of conduct and choose your insurance policy carefully. Here are some specific tips:
Observe your duty of care: Close windows and doors when leaving the flat, do not leave electrical appliances running unattended, and handle sources of fire with care. Even small measures can significantly reduce the risk.
Regular checks: Regularly inspect the hoses on washing machines and dishwashers for leaks and replace them in accordance with the manufacturer’s instructions. A burst hose can quickly lead to costs of more than two thousand euros.
Check old policies: In particular, contracts that are more than five to ten years old often do not include any or only inadequate cover for gross negligence.
Look for a waiver clause: Choose a tariff that expressly waives the defence of gross negligence. This is the best protection.
Report damage immediately: Inform your insurer promptly and truthfully about any damage.
By acting consciously and choosing the right insurance cover, such as that offered by a modern contents insurance policy, you can protect yourself effectively. Also consider supplementary policies such as natural hazard insurance.
Your next step towards comprehensive protection
The risk of causing damage through gross negligence is ever-present in everyday life. Without the right insurance cover, the financial consequences can be significant. Contents insurance that also provides cover in the event of gross negligence is therefore an important safeguard for your home and belongings. At nextsure, we value transparent and high-performing insurance solutions that genuinely help you when it matters most. We help you tailor your insurance cover optimally.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific suggestions for optimisation.
More useful links
Wikipedia provides a comprehensive overview of the concept of negligence in German law.
The Federal Ministry of Justice and Consumer Protection provides the full text of Section 81 of the German Insurance Contract Act (VVG), which governs the consequences of gross negligence.
Haufe provides detailed information on gross negligence in insurance law.
Finanztip provides independent information and advice on household contents insurance.
FAQ
What does “waiver of the defence of gross negligence” mean?
This clause means that your contents insurance will still pay out even if you caused a loss through gross negligence. There is often no deduction from the compensation, or only a limited one, up to the agreed sum insured.
What role does § 81 VVG play in cases of gross negligence?
Section 81(2) of the VVG allows the insurer to reduce the benefit if the policyholder caused the loss through gross negligence. The reduction is made in accordance with the degree of fault (apportionment).
Do I always have to expect a 100% reduction in the case of gross negligence?
No, a one hundred per cent reduction is only possible in particularly serious cases of gross negligence that are tantamount to intent. Graduated reductions are usual, depending on the severity of the culpability.
Does home contents insurance pay if I only pulled the door shut and didn’t lock it?
Leaving the flat with the door only pulled shut can be regarded as grossly negligent, which can lead to reduced benefits if a burglary occurs. A policy that waives the defence of gross negligence is advantageous here.
Are damages caused by unattended candles always the result of gross negligence?
Yes, leaving candles burning unattended is very often regarded as gross negligence, especially if it causes a fire. However, the exact circumstances are assessed on a case-by-case basis.
What can I do if my insurer claims gross negligence?
First, check your insurance policy to see whether a waiver of the defence of gross negligence has been agreed. Lodge an objection and describe the circumstances in detail. If necessary, legal advice or involving an ombudsman may be advisable.
