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What should I do after a liability claim in Germany?

In short

Report the incident to your insurer within one week, even if nobody has asked you for money yet. Take photos and note names and witnesses, but do not promise to pay. The insurer checks whether you are liable at all, pays justified claims and fights unjustified ones. Once the amount is settled, it must pay within two weeks.

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What should I do after a liability claim in Germany?

What it costs

What a claim costs you depends mainly on your deductible. Here are typical premiums for personal liability in Germany.

Example	Typical range
Single, policy with good cover	about EUR 40 to 120 a year
Couple or family	about EUR 60 to 180 a year
Your share per claim	EUR 0 to 250, depending on the agreed deductible
Defence against an unjustified claim	EUR 0 for you, the insurer pays lawyer and court costs

Guide values as of September 2026 from publicly quoted premium ranges. The deadlines are set in the German Insurance Contract Act and in the insurance industry's model terms; your contract may contain more favourable rules.

Worked example

Washing machine leaks, neighbour's ceiling soaked

The inlet hose bursts while you are out shopping. Water runs into the flat below, ceiling and laminate floor are wet. You report it the same evening.

Drying and painting at the neighbour's	EUR 2,600
Laminate, eight years old, reduced to current value	EUR 1,200 instead of EUR 1,800
Justified claim	EUR 3,800
Your deductible	EUR 150
Paid by your personal liability insurer	EUR 3,650

You pay EUR 150. Often the neighbour's building or contents insurer pays first and then recovers the money from your insurer; that changes nothing for you. The figures are a worked example.

The first minutes and hours

First, stop the damage from getting worse: turn off the water, help an injured person, secure the spot. Almost every policy requires this, and the insurer usually pays the cost of doing it.

Then secure evidence. Photograph the damage from several angles and write down date, time, place, and the names and addresses of the injured party and any witnesses. Keep damaged parts until the insurer says you may throw them away.

What	Why it matters
Photos of the damage and surroundings	show how it happened and what was broken before
Name and address of the injured party	the insurer contacts them directly
Witnesses with phone numbers	important if fault is disputed later
Damaged parts, receipt, age of the item	used to work out the current value the insurer pays
A short note of what happened	memory fades after a few weeks

Reporting: when, how and what to include

Under § 104 VVG, the German Insurance Contract Act, you must tell your insurer within one week about anything that could make you liable. The deadline starts again if someone makes a claim later. Most insurers accept reports online, by app or by phone, often in German only.

Describe what happened factually and leave nothing out. Deliberately false statements can cost you all cover, and for gross negligence the insurer may reduce payment. If you receive a court payment order (Mahnbescheid) or a lawsuit, forward it at once and file an objection in time.

Why you should not promise anything

It is natural to say at the scene: my insurance will pay. Such a promise does not cost you your cover, because under § 105 VVG the insurer may not refuse payment for that reason. But it only pays what you legally owe. If you promised or paid more, you bear the difference.

You may and should describe truthfully what happened. Leave the question of who is liable and for how much to the insurer.

How the insurer checks and pays

Personal liability insurance only pays if German law makes you responsible for the damage. That is less often the case than many people think, for example with a pure accident among friends without any fault. Then the insurer rejects the claim and pays the cost of doing so, including lawyers and court.

It pays the current value (Zeitwert) of the item at the time of the damage, not the price of a new one. Once the claim and amount are settled, the insurer must pay within two weeks under § 106 VVG or release you from the claim.

Small claims: pay yourself or report?

After a claim, both sides may cancel the contract. Anyone who reports several small claims in a short time may therefore receive a cancellation. If the damage is barely above your deductible, settling it yourself can make sense.

You should still report almost always, especially when someone is hurt. Whether high costs for treatment or lost earnings follow is rarely clear on day one.

Step by step

Limit the damage and get help if needed.
Take photos and note names, addresses and witnesses.
Do not admit fault or promise payment, just describe what happened.
Report to your insurer within one week, with photos and notes.
Refer the injured party to your insurer and answer all its questions fully.
Forward any payment order or lawsuit at once and keep deadlines.

Checklist

Policy document and number to hand
Photos of the damage and surroundings
Name, address and phone number of the injured party
Witnesses with contact details
Receipt or age of the damaged item
Report sent within one week, receipt confirmed

Common mistakes

Promising at the scene that insurance will pay for everything
Waiting to report until a bill arrives
Throwing away damaged parts before the insurer has seen them
Hiring a repair shop yourself and expecting the new price
Ignoring a Mahnbescheid because you think it is the insurer's job

Questions and answers

Frequently asked

How long do I have to report a liability claim?

One week from the incident or from the first claim. A slightly late report does not automatically cost you cover, but it makes the check harder. Report as early as possible.

Can I simply pay for the damage myself?

Yes. The insurer will then only reimburse what you legally owe. Clarify first whether and how much it will cover.

Do I have to give the other person my insurance details?

It is sensible. Give the insurer's name and your policy number so it can make contact directly. You do not have to promise more.

Why does the insurer only pay the current value?

Under German damages law, the injured party receives what the item was still worth. A five-year-old phone is not replaced at the new price.

What if it was not my fault?

Then the insurer rejects the claim. That defence is part of the cover and costs you nothing, even in court.

Can my policy be cancelled after a claim?

Yes, both sides may cancel after a claim. After a single claim this is rare, after several small ones in a short time more common.

Sources

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