Why proof of the break-in, the list of stolen goods, and hidden clauses determine your compensation.
After a burglary, does your home contents insurance reduce or deny coverage? Disputes almost always arise over the same issues: proof of the burglary, the list of stolen items, underinsurance, limits on valuables, and allegations of gross negligence. Rogert & Ulbrich will review the denial and enforce your claims against the insurer.
What home contents insurance covers after a burglary
Home contents insurance covers movable items in the home if they are destroyed, damaged, or stolen due to an insured peril. After a burglary, three scenarios are particularly important: burglary itself, robbery, and vandalism committed by the perpetrator in connection with the break-in. Reimbursement is generally based on the replacement value, meaning the cost of equivalent new items.
So much for the theory. In practice, the insurer uses several points to reduce or completely deny compensation. The most important are proof of the burglary, the list of stolen items, underinsurance, the compensation limits for valuables, and the allegation of gross negligence.
From his previous work on the insurance side, lawyer Dario Kovac is familiar with these review criteria. Those who know them can effectively counter a reduction in benefits.
Is your insurance company reducing or denying your claim after a burglary? Don't accept their explanation without question, because a Insurer's refusal to pay benefits is often vulnerable to attack.
Burden of proof: the external appearance of the burglary
The most frequent point of contention is proving that a burglary actually occurred. You don't have to prove the break-in beyond a shadow of a doubt, but you do have to present the so-called outward signs of a burglary. According to case law, it is sufficient if you demonstrate facts that, based on common experience, suggest a burglary with a reasonable degree of probability, typically signs of forced entry and the absence of stolen items.
If you can provide this proof, the ball is in the insurer's court. They can only refuse payment if they, in turn, can prove a significant probability that the burglary was staged. Mere suspicion or the lack of clear evidence is not sufficient.
That's why the evidence at the crime scene is so important. Broken windows, pry marks on doors, or damaged locks are the core of your evidence. If they are hastily removed, proving your case becomes unnecessarily difficult.
Does the insurer deny the burglary or allege it was staged? Secure all evidence and have the case reviewed.
The list of stolen items and the report to the police
After a burglary, you have several obligations. Two are particularly important: You must report the burglary to the police immediately and submit a list of the missing items, the so-called stolen goods list, to your insurer and the police. This list also serves as an aid in the investigation and therefore must not be submitted too late.
Insurers often exploit errors in these obligations. A late, incomplete, or subsequently supplemented list of stolen goods is considered a breach of duty. However, whether this actually results in a reduction of benefits is a matter of... Contract interpretation and breaches of duty.
The consequences are governed by Section 28 of the German Insurance Contract Act (VVG). The insurer is only completely exempt from liability in cases of intentional negligence. In cases of gross negligence, the insurer may only reduce the benefit in proportion to the degree of fault; in cases of simple negligence, the insurer remains fully liable. Furthermore, the negligence must have been the cause of the damage.
Is the insurer citing a faulty list of stolen goods? A complete denial of benefits is often inadmissible in such cases.
Underinsurance and the valuables clause
Two further clauses determine the amount of compensation and are often underestimated:
- UnderinsuranceIf the sum insured is lower than the actual value of all household contents, underinsurance exists. The insurer then reduces the payout proportionally according to Section 75 of the German Insurance Contract Act (VVG), even for minor damages. If only half of the household contents are insured, the burglary damage will also only be compensated at half the rate. An agreed waiver of underinsurance, usually linked to a sum insured per square meter, excludes this reduction.
- Valuables clauseFor valuables such as jewelry, cash, precious metals, or high-quality watches, the policy terms often stipulate compensation limits, such as a certain percentage of the sum insured. Higher amounts are often only reimbursed if the items were kept in a recognized safe.
Both clauses can result in the payout being significantly lower than the actual loss. It is therefore crucial to know the sum insured and the limits for valuables, and to understand the insurer's calculations. Not every reduction is justified.
Is your insurer reducing your payout due to underinsurance or value limits? Have the calculation checked before you accept it.
Gross negligence: the tilted window
A recurring accusation is that you facilitated the burglary through gross negligence, for example by leaving a window tilted or open, or a key hidden under the doormat. The insurer then bases its claim on Section 81 of the German Insurance Contract Act (VVG), which concerns the causation of the insured event.
Here, too, a clear distinction applies. In cases of simple negligence, the insurer remains fully liable. In cases of gross negligence, they may only reduce the benefit in proportion to the severity of your fault, not automatically to zero. Furthermore, whether leaving a window tilted constitutes gross negligence depends on the circumstances, such as the accessibility of the window.
It's also important to note that many modern insurance policies explicitly waive the defense of gross negligence or mitigate it. Whether your contract contains such a clause can be determined from its terms and conditions, and this can refute the accusation from the outset.
Is your insurer accusing you of gross negligence? Check whether your policy even allows for this objection and whether a full reduction in benefits is justified.
Document immediately: what you should record after a break-in
Immediately after a burglary, your documentation will determine whether you can refute any later objections from the insurer. What you record now can hardly be rectified later. These steps are crucial right away:
- Call the police and file a report.Report the break-in immediately and get the case number.
- Photograph traces and damage: Document signs of forced entry as well as damaged doors, windows and locks from multiple perspectives before making any changes or repairs.
- Inform the insurer immediatelyReport the damage promptly and in a verifiable manner.
- Create an initial list of stolen goodsMake a list of the stolen items for the police and insurers as early as possible and add to it as soon as you notice further losses.
- Secure your purchase receiptsCollect purchase receipts, invoices, photos, serial numbers and appraisals, especially for jewelry, watches, cash receipts and other valuables.
- Check policyClarify the sum insured, any waiver of underinsurance, and the limits for valuables.
This documentation is not an end in itself. The insurer's objections will later focus on precisely these points. If photos of the break-in evidence are missing, they will dispute the external appearance of the break-in or suggest it was staged. If the list of stolen items is unclear or incomplete, they will consider this a breach of duty. If receipts for jewelry or cash are missing, they will invoke the value limits. And if a window was left ajar, they will accuse the insurer of gross negligence. Anyone who documents everything thoroughly from the outset eliminates the basis for these objections.
This article is part of our series on property insurance. We will cover how homeowners insurance covers water and storm damage in a separate article. You can find an overview of our work in the section... Insurance law.
The sooner the case is reviewed, the better evidence and claims can be secured. Have your rejection assessed while there is still time to respond.
Rogert & Ulbrich – Your lawyers in insurance law
Rogert & Ulbrich represent policyholders nationwide in disputes with their household insurance companies. Attorney Dario Kovac, who is familiar with insurers' review and rejection strategies from his previous work on the insurers' side, serves as the contact person. We combine this insider knowledge with the firm's consumer protection experience from major cases in banking, capital markets, and automotive law. This allows us to engage with insurers on equal footing.
We will review your rejection letter and the insurance terms and conditions, assess the evidence regarding the external appearance of the break-in, and check for any reductions due to the list of stolen items, underinsurance, value limits, or gross negligence. In the case of the Examination and enforcement of claims arising from insurance contracts We represent you out of court and, if necessary, in court. We involve any existing legal expenses insurance early on and obtain the coverage confirmation for you.
Has your home contents insurance company rejected or reduced your claim after a burglary? Get in touch and secure your rights.
