Insurance World

About 87 percent of the residents of Germany have statutory health insurance, i.e. GKV. As of May 2005, the GKV relied on 321 non-profit sickness funds to collect premiums from their members and pay health care providers according to negotiated agreements. Those who are not insured this way, mainly civil servants and the self-employed, receive health care through private for-profit insurance.

An estimate of 0,3 percent of the German population (around 250,000 people) has no health insurance at all. Some of them are so rich that they do not need it but most of them are poor and receive health care through social assistance.

Germany’s statutory health insurance

There are three different categories of sickness funds: primary funds, substitute funds and “special” funds. Some workers are required to be members of the primary funds, e.g. if they earn less than the than the income ceiling (2006: EUR 3,937.50 per month / EUR 47,250.00 per year). Those earning more than that ceiling may be members on a voluntary basis, or they may have a choice of funds. Some of them automatically become members of a particular fund for example because of their occupation (company-based funds) or place of residence (local sickness funds). Some occupations have their own “special” funds, e.g. farmers or sailors.

Substitute funds are divided into two kinds: they provide health insurance to both white collar workers and blue collar workers earning more than the income ceiling. Membership is voluntary.

Both, employers and employees pay half of a member’s premiums, which in 2006 averaged between 13 and 14 percent of a worker’s gross earnings up to the contribution assessment ceiling (2006: EUR 3,562.50 monthly / EUR 42,750.00 p.a.). Premiums are fixed according to earnings rather than risk and are unaffected by the respective member’s marital status, family size, or health. Premiums are the same for all members within a particular fund with the same earnings.

Germany’s private health insurance

About eleven percent of Germany’s residents pay for private health insurance provided by some 40 for-profit insurance carriers. Many of those choosing private insurance are civil servants who want to secure percentage of their medical bills not covered by the government. Some sickness-fund members buy additional private insurance to cover such extras as a private room or a choice of physicians while in a hospital. Otherwise, the medical care provided to the publicly and privately insured is identical. In both cases the same medical facilities are used. Self-employed persons earning above the income ceiling must have private insurance. Members of a sickness fund who leave it for a private insurance carrier are not allowed to return to public insurance.

As opposed to the statutory heath insurance, contributions to the private insurance depend on the member’s age, gender, occupation and health status, that is, the individual risk. Although private insurance companies pay health care providers about twice the amount paid by the primary sickness funds, private insurance is often cheaper than statutory health insurance, especially for younger policyholders without dependents. As is the case for members of sickness funds, employees who have private insurance have half their premiums paid by their employers.

Pests and vermin are costing homeowners money – a survey carried out by ICM revealed that in the last year, one in ten homeowners have had to pay a bill as a result of damage caused by the little critters. Most of the damage is caused by the five most common pests: mice, wasps, grey squirrels, rats and hornets – and which year on year invade our homes, causing all kinds of damage.

The problem is that although most home and contents insurance policies cover the results of a pest problem, for example a fire caused by chewed wiring, under the accidental damage part of the policy, they don’t cover the damage itself. So if you discover that you are sharing your house with vermin, then you will probably have to cover the associated costs yourself.

There are a few exceptions. Saga, for example, includes damage caused by squirrels in all its policies. Choose its Cover Plus policy and damage by all vermin is covered.

Esure is another notable exception, and they now offer full cover for damage from the top five most common vermin to all policy holders for an extra Ј21.99 a year. Compare that to the cost of having a hornet’s nest removed - Ј100 – or Ј150 to have rodents eradicated, and it seems like a good investment.

Peter Priestley, president of the British Pest Control Association, has seen some of the worst pest cases, the most notable being a house in Preston where the upper floor of a house completely collapsed as a result of rats chewing through the joists. In the Isle of Man, they have a particular problem with rats. One man was found dead, having fallen down the stairs – the bottom half of his torso had been eaten by rats that had entered his house.

More everyday cases involve squirrels breaking ornaments and damaging furniture – causing damage that regularly adds up to Ј4000. Mice and rats chewing through flooring is another expensive problem, the bill can reach Ј1500 in a worst-case scenario. The costs of eradicating the pests can also be inflated due to the fact that the pest control is currently unregulated. As an Esure spokesperson said, “Many people are left to find their own contractor, potentially calling out ‘cowboy’ pest controllers to their homes to then be faced with a hefty bill.”

The best insurance is prevention, and we have put together some tips to help you avoid being targeted by vermin.

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Keep your garden and the area around your house free of spilled rubbish, make sure the rubbish goes in a bin that had a lid.
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Don’t leave spilled birdseed under feeders and bird tables – it could attract mice, rats and squirrels.
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Seal up holes around pipework – mice can get through tiny gaps. The basic rule is, if a pencil fits in the hole, so can a mouse.
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Keep your home clean – don’t leave dirty plates out, clean up spills and vacuum on a regular basis.
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Don’t leave piles of wood, leaves, pipes and other detritus in the garden as it provides a perfect hiding place for mice.
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Try not to keep items like clothes, cuddly toys and tissue paper in the loft – it provides a perfect nest for wasps and hornets.

If you live near a nature reserve or an area that is rich in wildlife, then it may be worth considering getting cover against pest damage. However, if you follow the above advice and also make regular checks then you may catch them in time, before they ruin your roost!