Insurance claim notification: 7 steps to successful settlement
20.04.25
8
Minutes
Katrin Straub
Managing Director at nextsure
A loss can happen quickly, but the correct notification of the damage to your insurer determines how swiftly it is settled. Many policyholders underestimate the importance of deadlines and complete information, which can lead to reduced benefits. This article shows you how to avoid typical mistakes and safeguard your entitlements.
The topic in brief and concise terms
Immediate notification of damage, usually within one week, is crucial for full insurance cover.
Document the damage in detail with photos and supporting documents, and list all damaged items.
Fulfil your obligations, such as mitigating loss and the duty to provide information, to avoid reductions in benefits.[14,44]
Basics of claim notification: understanding your first obligation in the event of a claim
The claims notification is your formal notice to the insurer of an insured event that has occurred. It is not merely a formality, but a contractual primary obligation, also known as a duty. Prompt notification, often within a week, is crucial. The Insurance Contract Act (VVG) provides the legal basis for this. An omitted or incorrect claims notification can lead to benefit reductions of up to fifty per cent. Swift and correct information to your insurer is therefore the key to receiving the full benefit. This first interaction lays the foundation for the entire claims-handling process.
Deadlines and format: Managing the timetable for your claim notification
The deadline for reporting damage is generally “without delay”, which is often interpreted as within seven days. In some insurance policies, such as statutory accident insurance, you only have three days. You can find the exact deadlines in your policy document or the General Conditions of Insurance (AVB). A report can be made by telephone, in writing by email or via the insurer’s online portal. Our expert tip: When sending a written report by post, always choose registered post with proof of delivery so that you can prove it was received on time. A delayed report can, especially in cases of gross negligence, lead to refusal of benefits. Please note the following points for a timely report:
Check your policy terms immediately for specific reporting deadlines.
When reporting online, use the confirmation email as proof.
Document the time of telephone reports and the name of the contact person.
For damage caused by criminal offences (e.g. burglary), an immediate police report is also required.
Even an oral report to the insurance agent can start the deadline running.
Compliance with these requirements is crucial so as not to jeopardise your claims.
Content requirements: This information should be included in every claim notification
A complete and accurate claim report speeds up processing considerably. Your insurer needs at least five key details: who, what, when, where and how the loss occurred. Always include your policy number to ensure it can be assigned quickly. A detailed description of how the loss happened and an initial estimate of the amount of damage are also important. Our expert tip: Document the damage immediately and comprehensively with photos or videos from different angles. When dealing with household contents damage, create a list of the damaged or stolen items, ideally with purchase receipts. The following information is essential:
Full name and address of the policyholder.
Policy number (see insurance policy).
Date, time and exact location of the incident.
Detailed and truthful description of how the damage occurred.
Names and addresses of any possible witnesses or third parties involved.
Details of any injured persons.
A list of the damaged items and an initial estimate of the amount of damage.
Information on measures already taken to mitigate the damage.
Careful details prevent follow-up questions and speed up settlement.
Typical sources of error: Avoid pitfalls when reporting a claim
Errors in reporting a claim can be costly and delay or jeopardise settlement. A common mistake is late notification, which can lead to reductions in benefits. Incomplete or unclear information about how the loss occurred prompts queries and slows the process.[1,23] Avoid downplaying the damage or prematurely admitting liability, especially in liability claims. The reporting of a liability claim requires particular care. Our expert tip: Never admit fault too quickly; leave the assessment of liability to your insurer. False or even deliberately deceptive statements can result in loss of insurance cover and even criminal consequences. Failing to document the claim adequately is also a common mistake.[23] Good preparation is therefore crucial.
Obligations in the event of a claim: know and fulfil your contractual duties
As the policyholder, you not only have rights, but also obligations, so-called duties.[24] In addition to the immediate notification of the loss, this also includes the duty to mitigate loss.[14,44] This means you must do everything reasonably possible to keep the damage as low as possible, for example by turning off the main water tap in the event of water damage. Another important duty is the obligation to provide information and evidence.[34,44] You must make all information and evidence necessary for the insurer to review the claim available to them. A breach of these duties can, depending on the degree of fault, lead to a reduction in benefits or even release the insurer from liability (§ 28 VVG).[24] This also applies in cases of gross negligence. Our expert tip: Always act as if you were not insured, in order to actively minimise the damage. Fulfilling these obligations is the basis for a smooth settlement.
Expert knowledge in brief: Relevant legal provisions and court rulings on damage notification
The Insurance Contract Act (VVG) governs the rights and obligations of both contractual parties. For the claims notification, in particular § 30 VVG (notification of the insured event) and § 31 VVG (duty of the policyholder to provide information) are relevant.[21,34] § 30 VVG requires immediate notification as soon as the policyholder becomes aware of the insured event. § 82 VVG deals with the causation of the insured event and the consequences of negligence.[54] Courts generally interpret the term “unverzüglich” as “without culpable delay,” which usually corresponds to a period of no more than one week. In disputes, for example over the amount of compensation for pain and suffering after a dog bite, the correct claims notification can be decisive. Our expert tip: In complex claims, or if the insurer wants to reduce the benefit, early consultation with a specialist lawyer for insurance law can be advisable. This provides additional protection for your position.
More and more insurers are offering the option of digital claims reporting via app or online portal. Almost seven in ten Germans (sixty-eight per cent) would like to report a claim digitally.[25] This offers several advantages: reporting is often possible around the clock and speeds up processing.[15] Documents such as photos of the hail damage or invoices can be uploaded directly. Digital communication is more efficient and saves paper.[15] However, only six per cent of policyholders consider the digital claims process to have been very easy since 2028.[55] Our expert tip: Check whether the digital channel is suitable for your specific claim and whether you receive confirmation that your report has been received. Despite all the advantages of digital processes, personal contact should not be avoided in complex cases or where there is uncertainty.
After the claim notification: Understanding the next steps in the claims process
Once your claim notification has been received by the insurer, the review process begins. The insurer assigns a claim number for further communication.[22] It checks whether it is obliged to provide cover in principle and as regards the amount. For larger losses, such as glass damage to your car, an expert or assessor is often appointed to evaluate the damage. This prepares an expert report, of which you should request a copy. The insurer is obliged, on request, to provide you with information about the status of the processing. There is no legally prescribed deadline within which an insurer must pay, but settlement should take place without unnecessary delay.[44] At nextsure, we place great importance on transparent and prompt processing of your concerns. Careful preparation of your claim notification is the first step towards a satisfactory solution.
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More useful links
On the website of Gesetze im Internet you will find the current version of the Insurance Contract Act (VVG), which regulates the legal basis for insurance claims.
The IHK Munich offers detailed information and guides on insurance law that are relevant for businesses and private individuals.
The Federal Ministry of Finance provides information on fundamental aspects of the financial market and the insurance sector in Germany.
FAQ
What does “without delay” mean when reporting a claim?
Without delay means that the notification must be made without culpable delay, once you have become aware of the damage. Courts usually interpret this as a period of up to one week.
Do I need to report every minor incident?
For very small claims, it can sometimes make sense to bear them yourself in order to avoid a possible cancellation by the insurer in the event of frequent claims or a premium increase. This depends on your policy and the amount of the loss.[42]
What is the duty to mitigate damages?
The duty to mitigate damage means that, as the policyholder, you are obliged, after a loss has occurred, to take all reasonable measures to keep the damage as low as possible.[1,14]
What happens if I make false statements in the claim report?
Incorrect information can have serious consequences. In the case of negligent false statements, the benefit may be reduced. In the case of intentional or fraudulent false statements, the insurer may withdraw from the contract and refuse the benefit entirely; criminal proceedings may also be brought.
How long does it take for the insurance to pay out?
There is no legally defined deadline for payment. The duration depends on the complexity of the case, the completeness of your documentation and the insurer’s workload. In straightforward cases it can take a few weeks; in complex cases involving expert reports, it can take longer as well.[44]
What can I do if the insurer refuses or reduces the payment?
First, review the insurer’s reasoning. If you do not agree with it, you can lodge an appeal. If necessary, seek support from a specialist solicitor in insurance law or contact the insurance ombudsman.
