Insurance Claim: 7 Steps to Successful Settlement
20 Apr 2025
9
Minutes
Katrin Straub
CEO at nextsure
An accident can happen quickly, but the correct notification of damage to the insurance company determines a swift settlement. Many policyholders underestimate the importance of deadlines and complete information, which can lead to reductions in benefits. This article shows you how to avoid common mistakes and secure your claims.
The topic in brief and concise terms
An immediate notification of damage, usually within a week, is crucial for full insurance coverage.
Document the damage in detail with photos and receipts and list all damaged items.
Fulfill your obligations such as damage mitigation and duty to provide information to avoid reductions in benefits.[14,44]
Understanding the Basics of Damage Reporting: Your First Duty in the Event of Damage
The damage report is your formal notification to the insurance company about an insurance claim. It is not just a formality, but a primary contractual obligation, also known as a duty. Prompt reporting, often within a week, is crucial. The Insurance Contract Act (VVG) provides the legal basis for this. A missed or incorrect damage notification can lead to benefit reductions of up to fifty percent. Quick and correct information to your insurance company is therefore key to full benefits. This first interaction lays the foundation for the entire claims process.
Deadlines and Format: Mastering the Schedule for Your Damage Report
The deadline for reporting a claim is generally "immediate," which is often interpreted as within seven days. With some insurance providers, such as statutory accident insurance, you have only three days. You will find the exact deadlines in your insurance policy or the General Terms and Conditions (GTC). A report can be made by phone, in writing via email, or through the insurer's online portal. Our expert tip: When sending a written report by post, always choose registered mail with acknowledgment of receipt to prove timely delivery. A delayed report may lead to refusal of benefits, particularly in cases of gross negligence. Follow these points for timely reporting:
Immediately check your contract conditions for specific reporting deadlines.
For online reports, use the confirmation email as proof.
Document the time of phone reports and the contact person's name.
For damages resulting from criminal acts (e.g., burglary), an immediate police report is also required.
A verbal report to the insurance representative can also start the deadline.
Adhering to these requirements is crucial to not jeopardize your claims.
Content requirements: This information should be included in every damage report
A complete and precise damage report significantly speeds up processing. Your insurance requires at least five core pieces of information: Who, what, when, where, and how did the damage occur. Always include your insurance number to ensure quick allocation. A detailed description of the circumstances and an initial estimate of the extent of the damage are also important. Our expert tip: Document the damage promptly and comprehensively with photos or videos from different angles. In cases of household damage, create a list of the damaged or stolen items, ideally with purchase receipts. The following details are essential:
Full name and address of the policyholder.
Insurance number (see insurance policy).
Date, time, and exact location of the incident.
A detailed and truthful description of the incident.
Names and addresses of potential witnesses or involved third parties.
Details of any injured persons.
An inventory of the damaged items and an initial assessment of the damage value.
Information on measures already taken to mitigate damage.
Careful details prevent inquiries and expedite settlement.
Common sources of error: Avoid pitfalls when reporting damages
Errors in reporting damage can be costly and delay or jeopardize settlement. A common mistake is late reporting, which can lead to reduced benefits. Incomplete or unclear information about the incident invites queries and slows down the process.[1,23] Avoid downplaying the damage or prematurely admitting liability, especially in cases of liability claims. Reporting a liability claim requires particular care. Our expert tip: Never admit fault prematurely; leave the evaluation of liability to your insurer. False or even fraudulently misleading information can result in loss of insurance cover and even lead to legal consequences. Failing to document the damage adequately is also a common mistake.[23] Good preparation is therefore crucial.
Obligations in the event of damage: Know and fulfil your contractual duties
As a policyholder, you have not only rights but also duties, known as obligations.[24] This includes not only promptly reporting damage but also a duty to mitigate damage.[14,44] This means you must take all reasonable steps to minimise the damage, for example, turning off the main valve in the event of water damage. Another important obligation is the duty to provide information and evidence.[34,44] You must provide the insurer with all the information and documentation necessary to assess the claim. Non-compliance with these obligations can lead to a reduction of benefits or even the insurer’s exemption from liability, depending on the severity of the negligence (§ 28 VVG).[24] This also applies in cases of gross negligence. Our expert tip: Always act as if you were not insured, to actively minimise the damage. Fulfilling these duties is the foundation for a smooth settlement.
Expert knowledge in brief: Relevant sections and court rulings on damage reports
The Insurance Contract Act (VVG) governs the rights and obligations of both parties to the contract. For the notification of claims, § 30 VVG (Notification of the insured event) and § 31 VVG (Policyholder's duty to provide information) are particularly relevant. § 30 VVG requires immediate notification as soon as the policyholder becomes aware of the insured event. § 82 VVG addresses the causation of the insured event and the consequences of negligence. Courts usually interpret the term "immediate" as "without culpable delay," which typically corresponds to a period of no more than one week. In cases of disputes, for example, regarding the amount of compensation for pain and suffering after a dog bite, correct damage reporting can be crucial. Our expert tip: In the case of complex claims or if the insurer intends to reduce the payment, early consultation with a specialist lawyer for insurance law can be advisable. This provides additional security for your position.
Digital claims reporting: Harness efficiency gains through modern channels
More and more insurers are offering the option of digital damage reporting via app or online portal. Nearly seven out of ten Germans (sixty-eight percent) would prefer to report a claim digitally.[25] This offers several advantages: the report 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 percent of policyholders have considered the digital claims process as very straightforward since 2028.[55] Our expert tip: Check whether the digital channel is suitable for your specific claim and whether you receive confirmation of receipt of your report. Despite all the digital advantages, personal contact should not be avoided in complex cases or in the presence of uncertainties.
After reporting the damage: Understanding the next steps in the claims process
More useful links
On the website of Gesetze im Internet, you will find the current version of the Insurance Contract Act (VVG), which governs the legal basis for insurance cases.
The IHK München offers detailed information and guides on insurance law, which are relevant for businesses and individuals.
The Bundesfinanzministerium provides information on the fundamental aspects of the financial market and the insurance sector in Germany.
FAQ
What does “without delay” mean when reporting damage?
Without delay means that the notification must be made without culpable hesitation as soon as you become aware of the damage. Courts generally interpret this as a period of up to one week.
Do I need to report every small damage?
For very minor damages, it can sometimes be sensible to cover them yourself to avoid a potential termination by the insurer in case of frequent claims or to prevent a premium increase. This depends on your contract and the amount of the damage.[42]
What is the duty to mitigate damages?
The duty to mitigate loss states that as a policyholder you are obliged, upon the occurrence of a loss, to take all reasonable measures to minimise the damage as much as possible.[1,14]
What happens if I provide incorrect information in the damage report?
False information can have serious consequences. In cases of negligent false statements, the benefits may be reduced. In cases of deliberate or fraudulent false statements, the insurer may withdraw from the contract and completely deny benefits; in addition, legal action may be taken.
How long does it take for the insurance to pay?
There is no statutory deadline for payment. The duration depends on the complexity of the case, the completeness of your documents, and the workload of the insurer. In straightforward cases, it may take a few weeks, while in complex cases with expert opinions it can take longer.[44]
What can I do if the insurance denies or reduces payment?
First, review the insurance company's justification. If you disagree, you can file an appeal. If necessary, seek assistance from a specialist lawyer for insurance law or contact the insurance ombudsman.
