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Errors in insurance applications can have serious consequences, ranging from reduced benefits to loss of coverage. Learn how to avoid common pitfalls and correctly prepare your insurance applications from the start. This way, you can secure your financial future and avoid costly surprises in the event of a claim.
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Truthful and complete information in the insurance application is crucial to ensure full coverage in case of damage.
The breach of the pre-contractual duty of disclosure may result in refusal of performance, termination of the contract, or even contestation of the contract.
Particular care should be taken with health-related questions; seeking advice from a doctor or health insurance provider is strongly recommended to avoid mistakes.
Do you know that uneasy feeling of having possibly missed something when filling out an insurance application? A mistakenly checked box or incomplete information in the insurance application can have far-reaching consequences. For heirs, property owners, and professional investors, comprehensive insurance coverage is essential. This article will show you how to avoid mistakes in insurance applications, understand the importance of each piece of information, and thereby optimise your insurance coverage. With the right strategies and awareness of common sources of error, you ensure that your policies provide the expected protection in emergencies and shield you from financial disadvantages.
Many applicants underestimate the significance of incomplete or incorrect information in insurance applications. Even minor inaccuracies can lead to unpleasant surprises in the event of a claim. Insurers scrutinise application data very carefully, especially when there is a potential obligation to pay benefits.
One of the most common sources of error is the inaccurate answering of health questions, for example, in disability or life insurance. If pre-existing conditions are concealed or treatments are not fully declared, the insurer can refuse payment in the event of a claim or even contest the contract. This also applies if the false information was given unintentionally, that is, only by mistake. Statistically speaking, one in four people becomes unable to work during their working life, highlighting the importance of accurate information. The consequences range from benefit reductions and contract cancellations to the reclaiming of amounts already paid in cases of fraudulent misrepresentation. Failing to disclose prior damage when it comes to property insurance can also jeopardise your coverage. Therefore, a careful and honest completion of the insurance application is essential. Clarify any uncertainties directly with the insurer or consult experts like Auctoa to minimise risks through a comprehensive risk assessment. Failure to observe these duties of care can significantly endanger your financial security.
The so-called pre-contractual duty of disclosure is a central component of every insurance application. It obliges you as the applicant to answer all the insurer's questions truthfully and completely. This obligation is enshrined in Section 19, Paragraph 1 of the Insurance Contract Act (VVG). The insurer needs this information to correctly assess the risk to be insured and to decide whether and under what conditions a contract will be concluded. Information about health, occupation, income and even hobbies may be relevant here.
The assessment of the materiality of risk lies solely with the insurer, not the applicant. Even if you consider some information to be unimportant, you must provide it if asked. Breaching this obligation can have consequences even years after the contract has been concluded if it is uncovered in the event of a claim. To avoid coverage gaps, it is crucial to take this duty seriously. Comprehensive knowledge and adherence to the pre-contractual duty of disclosure is thus a foundation for solid insurance coverage.
Health questions are a particularly critical point in many insurance applications, especially for personal insurance. Here, the utmost precision is required, as even the smallest inaccuracies can be considered a breach of the duty of disclosure. Insurers ask for detailed information about pre-existing conditions, medical treatments, hospital stays, and medication use. The enquiry periods can vary, often extending 5 to 10 years back or even being unlimited.
One challenge is that many people do not have a complete overview of their medical history from the past years. The following points illustrate the complexity:
No uniform wording of application questions by insurers.
Different enquiry periods for various health aspects.
Lack of knowledge about exact diagnoses or treatment periods.
It is strongly recommended to obtain your own medical records from doctors or the health insurance company before completing the form. This way you can ensure that all questions are answered correctly and completely. Even seemingly trivial doctor's visits can be relevant. A well-considered insurance strategy includes the careful preparation of this health information. This accuracy protects you from the risk of being without the expected protection in the event of a claim.
The consequences of providing false information in an insurance application are manifold and can threaten your financial existence. If the insurer discovers that you have breached your pre-contractual duty of disclosure, they can take various actions depending on the severity of the fault. In cases of intentional misinformation, for example, to secure a lower premium, the insurer may contest the contract. In such cases, they are not obliged to provide coverage and may retain any premiums already paid.
Even in instances of accidental misinformation, the insurer can withdraw from the contract, for example, by terminating it. If the insurer would have entered into the contract knowing the true facts but under different terms (e.g., higher premiums, risk exclusions), the contract may be adjusted accordingly. Further possible consequences include:
Refusal of benefit: The insurer does not pay in the event of a claim or only partially.
Withdrawal from the contract: In the case of fraudulent misrepresentation, the contract may be dissolved retroactively; benefits already received may need to be reimbursed.
Contract termination: The insurer terminates the contract with due notice.
Increased premiums: Undercharged premiums can be demanded retrospectively.
Legal consequences: Intentional misinformation can be considered insurance fraud and prosecuted criminally.
It is therefore of utmost importance to complete every insurance application with the greatest care and honesty. Underinsurance due to false information can have dire consequences. Awareness of these potential outcomes underscores the necessity of taking the application process seriously.
Digitalisation has also not stopped at insurance applications. More and more insurance policies can be conveniently taken out online. This offers advantages such as speed and the ability to easily compare offers. Concluding an online insurance contract is legally just as valid as a personally signed contract, provided the application is accepted by the insurer.
On the other hand, online applications also carry risks. The lack of personal advice can result in important details being overlooked or technical terms being misunderstood. The responsibility for obtaining accurate and complete information often rests solely with the applicant. It is essential to read all questions carefully and answer truthfully, even in online applications. The temptation to quickly click through forms should not override thoroughness. Embrace the digital opportunities, but be aware of potential pitfalls. An analysis of the insurance market can also be carried out online, but it should be complemented by a careful review of contract details. Digital applications require a high degree of personal responsibility.
To avoid errors in the insurance application and to ensure your coverage, you should follow some basic tips. Careful preparation and processing of the application can save you a lot of trouble and financial disadvantages later on. Take your time and don't rush anything.
Here are concrete recommendations for action:
Read all questions and conditions thoroughly: Understand exactly what is required of you before you respond.
Take your time: Do not fill out the application under time pressure. Allocate sufficient time for answering, especially for health questions.
Be absolutely honest and complete: Do not leave anything out and provide all required information correctly, even if it could increase the premium. Honesty pays off in the event of a claim.
Gather information: For health questions, it may be useful to obtain information from doctors or your health insurance (e.g., a patient receipt or medical record).
Document everything: Make copies of the completed application and all submitted documents for your records.
Ask if in doubt: Do not hesitate to contact the insurer or an independent advisor if you do not understand any questions.
Carefully check your details before submitting: A final check can uncover typographical errors or missing information.
Report changes immediately: Even after the contract is concluded, relevant changes in your life circumstances (e.g., job change, construction work) must be reported to the insurer.
Professional support with insurance applications can be worthwhile. With these measures, you lay the foundation for solid and reliable insurance coverage.
Correct insurance applications are crucial, especially in the field of real estate and inheritances. Incorrect valuations in a home or contents insurance policy can quickly lead to dangerous underinsurance. In the event of a claim, the insurance would then only cover part of the costs. Auctoa can support you here as a digital companion for objective, AI-assisted real estate valuations. An accurate valuation of your property is the basis for stating the correct insurance value.
A data-driven real estate valuation by Auctoa minimises the risk of misvaluation and thus of potential underinsurance or overinsurance. Do you need a quick and neutral valuation of your property for insurance purposes or as part of an inheritance matter? Our ImmoGPT chat is available for your initial queries, or you can request a detailed valuation directly. This ensures that your insurance applications are based on solid data and your assets are optimally protected. A correct risk minimisation strategy begins with accurate values. Auctoa's expertise helps you avoid costly mistakes.
The correct and complete processing of insurance applications is not trivial but a crucial step for your financial security. Any mistake, any inaccuracy can have serious consequences in the event of a claim—from benefit reductions to the complete loss of insurance coverage. Take the time to carefully review all questions and answer them truthfully. Obtain medical information if needed and document your details.
Especially in the context of real estate and inheritances, where high values are often at stake, precision is essential. A well-founded assessment, such as the one offered by Auctoa, can help avoid common sources of error in value indication. Remember: A well-completed insurance application is the best protection against unpleasant surprises. Invest the necessary care—it's an investment in your future and your peace of mind. Your financial protection significantly depends on your honesty and accuracy in the application process.
The Insurance Ombudsman provides his annual report, offering detailed insights into arbitration work in the insurance sector.
The GDV (German Insurance Association) highlights seven key facts about disability insurance.
The Consumer Advice Centre offers comprehensive advice on which insurance policies are sensible and necessary in individual cases.
The Federal Statistical Office (Destatis) provides current press releases that include relevant statistical data.
The GDV offers a detailed overview of current statistics and key figures in the German insurance industry.
Wikipedia delivers a comprehensive overview of the concept of insurance, its history, and how it works.
The German Pension Insurance provides online services for applying for pension benefits.
The Federal Office for Social Security provides information on the processes and peculiarities of appeals procedures with statutory health insurance companies.
What are the most common mistakes made in insurance applications?
Common mistakes include incomplete or incorrect health information, failing to disclose previous claims, incorrect details about insurance values (e.g., for properties), or not notifying about increased risks.
Should I request my medical records for the insurance application?
Yes, it is highly recommended, especially for disability or private health insurance applications, to obtain your medical records or at least a detailed statement from your health insurer to answer health questions accurately.
What can I do if I discover a mistake in my insurance application afterwards?
Inform your insurer promptly and in writing about the mistake. Proactively correcting it can often help to prevent future issues and serious consequences.
Can an insurance broker help with filling out the application?
A qualified, independent insurance broker can advise you when filling out the application and point out potential pitfalls. However, the responsibility for the accuracy of the information ultimately lies with you.
Are online insurance applications as secure as postal ones?
Online applications are legally binding. Security depends on the provider's reliability and the applicant's diligence. The downside may be the lack of personal advice, which can lead to misunderstandings.
How does incorrect property valuation affect the insurance application?
An undervaluation of property can lead to underinsurance, meaning the insurance won't cover the full damage in the event of a loss. An overvaluation results in unnecessarily high premiums. An accurate valuation, like the one offered by Auctoa, is therefore important.
