Claiming hail damage on your house: How to optimally secure your entitlements
29 Apr 2025
6
Minutes
Katrin Straub
CEO at nextsure
A hailstorm has damaged your house and you are considering claiming the damage? This is often possible, but it involves some pitfalls. Find out here how to proceed and what you need to consider to avoid financial disadvantages.
The topic in brief and concise terms
A payout for hail damage (fictional settlement) is often possible, but insurers frequently reduce the amount by at least twenty percent and pay out net without VAT.
The responsibility for proving the hail damage and its cause always lies with the policyholder; comprehensive documentation is crucial.
Clarify the conditions of a notional settlement with your insurance in writing beforehand, to avoid financial disadvantages and misunderstandings.
Understanding the basics: When is it possible to receive a payout for hail damage?
The possibility of having a hail damage claim for your house paid out is not uniformly regulated. Insurers handle the notional settlement differently, often based on contractual terms. A payout based on a cost estimate or appraisal is conceivable. However, many insurers reduce the payout amount by at least twenty percent. This leads to financial losses if repairs become more expensive later.
The residential building insurance is a cost insurance that covers repair costs. A pure payout without repair partially contradicts the principle. Many companies accept notional settlements to simplify the process. The individual agreements in your insurance policy are always crucial. Check them carefully or seek expert advice. Contract details are the first step towards successful damage settlement.
Claims Settlement Process: From Reporting the Damage to a Notional Settlement
Quick action is required after hail damage. Document damages immediately with photos and notes. Report the damage to your insurance without delay. Prompt reporting speeds up the settlement. Take immediate measures to prevent further damage. This is part of your duty to mitigate loss.
The following steps are common for the fictitious settlement of hail damage:
Obtaining an estimate from at least one tradesperson.
The insurance may possibly appoint an assessor to evaluate the damage.
Notify the insurance company that a fictitious settlement is desired.
The insurer reviews the facts and the estimate/assessment.
Payment of the agreed amount, often minus VAT and any potential deductions.
Our expert tip: Agree on the conditions of a fictitious settlement with the insurance in writing. This prevents misunderstandings and later deductions. Transparent communication is crucial for success in this regard.
Financial Aspects: What is considered when making a payment?
In cases of fictitious invoicing, insurers often deduct VAT. You usually only receive the net amount of the repair costs. This is common practice, as no VAT is applied without a craftsman's invoice. Deductions can amount to twenty to forty percent of the sum.
Focus on Material and Labour Costs
Material costs are usually less contentious than labour costs. Prices for building materials are easy to verify. Insurers often apply lower hourly rates for fictitious labour costs. These are sometimes based on the minimum wage rather than prevailing local rates. This results in discrepancies between estimates and payouts. A fifty-euro craftsman hourly rate is typical, but insurers only pay fourteen euros.
Some insurers initially only pay the current value. The full replacement value is reimbursed after repairs and invoices. Carefully examine which calculation basis your insurer applies. This directly influences the amount of your compensation. A correct damage report is essential here.
Legal Pitfalls: Burden of Proof and Court Judgments
The burden of proof lies with the policyholder. You must demonstrate the hail damage and its extent. A judgment by the OLG Dresden makes this clear. A lawsuit was dismissed; the damages were not proven beyond doubt. Hail as the cause had to be convincingly demonstrated completely. Mere probability is not sufficient for the court.
No supreme court rulings enforce a uniform approach for fictional accounting. AG Recklinghausen and LG Köln consider the cost estimate billing as contradictory. Therefore, document everything comprehensively. Consult a specialist lawyer in case of discrepancies. A careful reporting of hail damage is essential.
Practical Tips: How to Maximise Your Payout
Proper preparation optimizes the payout of your hail damage claim. Obtain one or two detailed estimates. All damage claims must be precise and transparent. An accurate listing minimizes discussions with the insurer. The natural hazard insurance may be relevant.
Here are some concrete action recommendations:
Take photos and videos of all damages immediately after the hailstorm from various perspectives.
Record the date and time of the event as well as the approximate size of the hailstones.
Report the damage to your insurance promptly and inquire about the next steps.
Only commission repairs after receiving written approval from the insurance if you want to be reimbursed for the costs.
Clearly express your desire for a non-specific settlement and clarify the terms (e.g., VAT deduction, reductions).
Do not hastily accept the first offer from the insurance; there is often room for negotiation.
Carefully keep all receipts and correspondence.
Our expert tip: Payout can cause problems with subsequent hail damage. The insurance might not cover the full costs then. Carefully weigh these consequences. nextsure helps you find the best strategy.
Alternative: Repair instead of payout – When is this more sensible?
Fictitious billing is not always the best solution. In cases of material damage or consequential damage, repair is unavoidable. The payout may not cover the full repair costs. Fictitious billing often reimburses only seventy percent of the new value.
Repairs by professional companies ensure the restoration and preservation of the property's value. The insurance then covers the verified costs, including VAT. This is better for major damage or lack of skill. Weigh the advantages and disadvantages carefully. Correct use of the building insurance is crucial.
The decision depends on the extent of the damage, skills, finances, and terms. Comprehensive advice helps to find the optimal solution. This way, you can avoid long-term disadvantages. Nextsure is happy to assist you with this. Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific optimisation suggestions.
More useful links
Statista provides data on the number of storm and hail damage incidents in residential building insurance in Germany.
GDV provides information on the significant fluctuations in damage caused by storms and hail to residential buildings.
Statista offers data on the average damage from storm and hail incidents in residential building insurance.
GDV explains why storm and hail damage are among the most expensive natural hazards.
Umweltbundesamt provides information on indicators in the field of agriculture and environmental impacts.
Verbraucherzentrale clarifies which insurance covers damage caused by rain, hail, storms, and thunderstorms.
Verbraucherzentrale provides comprehensive information on insurance coverage against natural hazards.
DWD (Deutscher Wetterdienst) offers detailed information on the topic of hail.
FAQ
What does fictional billing mean in the event of hail damage to a house?
Fictitious settlement means that you receive the estimated amount of damage from the insurance without actually having the repair carried out or submitting invoices. The payout is usually based on an estimate or expert opinion, often reduced and excluding VAT.
Which insurance covers hail damage to the house?
For hail damage to the building itself (roof, facade, windows, permanently installed parts), the homeowners insurance is responsible. Damage to movable property in the house (furniture, electronics) is covered by the contents insurance.
How do I properly document hail damage for the insurance company?
Photograph and film all damage in detail from different angles. Note the date and time of the hailstorm, as well as the size of the hailstones. Create a list of all damaged items and areas.
Can the insurance refuse payment for hail damage?
Yes, the insurance can refuse payment if, for example, you breach your obligations (e.g. report late), the damage cannot be clearly attributed to hail, or there were previous damages and you are unable to meet the burden of proof.
What are the drawbacks of opting for a payout on hail damage?
The paid amount is often lower than the actual repair costs (reductions, no VAT). Furthermore, if there is another incident later, there might be issues with differentiation, resulting in the insurance not covering the costs.
How quickly do I need to report a hail damage to my insurance company?
You should report any hail damage to your insurance company without delay, as soon as possible. The exact deadlines can be found in your insurance policy terms, but timely notification is always advisable.
