Nationwide compulsory insurance for homeowners required: Kretschmann threatens financial consequences

Nationwide compulsory insurance for homeowners required: Kretschmann threatens financial consequences

According to a report from www.swr.de, Baden-Württemberg's Prime Minister Kretschmann is calling for nationwide compulsory insurance for homeowners to cover flood damage. He criticizes the federal government for rejecting such compulsory insurance and threatens financial consequences. Kretschmann emphasizes that flood damage like in the Ahr Valley places an enormous burden on public budgets and that compulsory insurance is necessary to cushion the consequences.

In Baden-Württemberg, 94 percent of homeowners are insured, while in other federal states less than 30 percent are insured. Kretschmann thinks this is unfair because his federal state ultimately has to pay for the financial consequences in other federal states. He warns that without the introduction of compulsory insurance, the state would become an insurer and people could cancel their insurance because they hope for support from the state. Environment Minister Thekla Walker also emphasizes that more money is needed for flood protection in metropolitan areas, as the potential for damage in threatened areas is ten billion euros.

The introduction of a nationwide insurance requirement for homeowners would force property owners to insure themselves against natural damage such as floods. This could help reduce the burden on public budgets and the state would no longer have to act as an insurer. At the same time, it could lead to an equalization of insurance rates in different federal states and create a fairer distribution of financial responsibility for damage in the event of natural disasters. The introduction of such compulsory insurance could, in the long term, lead to a reduction in the financial burden on the state and a fairer distribution of responsibility.