Let's say you accidentally spilled red wine on your friend's fancy carpet and professional cleaning didn't work so, you've made a liability claim on your insurance. Your friend is looking for a full reimbursement for a replacement carpet. The big question is, how much will your insurance cover in this situation?
How are reimbursements calculated?
When it comes to covering repair or replacement costs for damaged items, the reimbursement considers any coverage limits specified in the policy as well as the age, use and life span of the item at the time of damage.
This is standard practice for property damages covered by liability insurance in Germany.
It's actually backed up by paragraph §249 in the Bürgerliches Gesetzbuch, (the Civil Code), and supported by German case law. This law is there to make sure you're not stuck paying more than what's fair in such situations. It's all about ensuring a fair deal for everyone involved!
How is a product lifespan calculated?
Certain items like appliances or electronics have an estimated lifespan provided by manufacturers or industry standards. This estimated lifespan helps us determine the depreciation and value of an item over time.
Some other items like furniture or carpets, the lifespan isn't always as straightforward. We rely on common usage guidelines, maintenance records, or expert assessments to gauge the expected lifespan and calculate reimbursements accordingly.
In the case of your friend's carpet, a fair reimbursement would be based on its current value taking into consideration the years of use and its reasonable life-span.
We recommend that you don't pay anyone before your claim has been assessed to avoid being left out of pocket.