Gross negligence: Stiftung Warentest reprimands insurer: 68 times “unsatisfactory”

This is very rare. Stiftung Warentest examined 196 insurance plans – and 68 received a "poor" rating. More than one in three plans. This affects virtually the entire industry, including providers such as Allianz, Arag, DEVK, Hanse Merkur, Nürnberger, and WWK.

The reason: Under these plans, insurance companies don't cover the entire damage in cases of "gross negligence." That doesn't sound too bad, but it makes a huge difference, the extent of which many homeowners apparently don't realize.

For example, anyone who fails to drain the outdoor water pipes before winter to prevent frost damage is acting grossly negligent. Anyone who fails to retract the awning during a storm, anyone who fails to shut off the main water valve in an unoccupied house, or anyone who leaves the house while candles are still lit, causing a fire. In all of these cases, the insurance companies would reduce the benefits under the disputed tariffs, or in extreme cases, not pay at all.

Overnight money offers from abroad are tempting, as they advertise significantly higher interest rates than German banks. But high return promises aren't everything. Potential customers need to be aware of this.

Colloquially, you'd say: You've screwed up. But even then, it's good to be insured. Or, actually, especially then. In insurance jargon, this is called a "waiver of the defense of gross negligence." This clause should actually be included in every insurance policy, whether for houses, cars, liability, or household contents.

The German Insurance Association (GDV) naturally sees things differently. The test merely shows , the GDV explained in response to a query from Stern , "that there is a broad spectrum of tariff offers." " This is an advantage for many consumers, while others may perceive it as a disadvantage."

The disadvantages aren't just a matter of perception. The clause not only guarantees proper insurance coverage, it also protects against unpleasant lawsuits against one's own insurance company. The controversial question of what constitutes "gross negligence" and what merely "negligent" has occupied countless judges. And especially in cases of major damage, such as those often encountered in homeowners insurance, insurance companies are prone to litigation. And an insurance company that refuses to pay has the upper hand over the insured – especially if the insured cannot upfront the costs.

More and more people want to continue working in old age. The federal government has now finally agreed on the introduction of the active pension. But there are tricky details that retirees should be aware of.

The plans criticized by Stiftung Warentest often have names like "Basic," "Standard," or "Classic." Either way, it's worth checking your existing contract for the "waiver of the defense of gross negligence" clause—and changing your contract if necessary.

The good news is: There are plenty of tariffs that have been rated "very good" or "good" – usually from the same providers. In the Stiftung's current test, there are 119.

Stiftung Warentest offers another tip: Only one in two homeowners is currently insured against natural hazards such as floods or landslides. However, coverage against such natural hazards is worthwhile, even though it makes insurance coverage more expensive. To keep costs within limits, the foundation recommends a high deductible: a €2,000 deductible can make the policy almost half as cheap. You shouldn't use your homeowners insurance for trivial things anyway.

This article is a reprint of Stern, which, like Capital, is owned by RTL Deutschland. It will be available here on Capital.de for ten days. Afterward, you can find it at www.stern.de.