Natural hazard insurance: will it soon be mandatory for owners?

Natural hazard insurance: will it soon be mandatory for owners?

A fundamental reform of natural hazard insurance is imminent in Germany. Loud chip.de There could soon be mandatory natural hazard insurance for many owners. This measure aims to reform residential building insurance so that natural damage will always be covered in the future. The background to these considerations is the increasingly frequent and intense weather events that are being intensified by climate change.

The bill to implement this regulation is expected to be presented by next year. However, owners who forego natural hazard insurance must expect that they will not receive any government support in the event of flood damage. This could have particularly serious financial consequences in regions with a high risk of flooding. The costs for such insurance can quickly amount to several thousand euros a year, especially in risk areas and for valuable properties.

Public hearing in the Legal Affairs Committee

It was emphasized at the hearing that the federal government should be asked to submit a draft law that ensures that residential building insurance is only offered with natural hazard coverage, which can then be optionally deselected. Experts like Prof. Dr. Oliver Brand from the University of Mannheim sees an urgent need for action, but notes that the potential cost risks for insured persons should not be ignored. This point is also signed by Anja Käfer-Rohrbach, a representative of the General Association of the German Insurance Industry, who points out that compulsory insurance could potentially lead to unaffordable premiums.

Political discussion about compulsory insurance

The discussion about a possible insurance requirement is characterized by different opinions. Some experts, like Dr. Kai Warnecke from Haus & Grund Germany reject such an obligation and instead call for a focus on preventative measures. However, Prof. Dr. Reimund Schwarze from the Helmholtz Center for Environmental Research has a legally mandated insurance requirement. According to their justification, the Union faction's application is a necessary step to improve risk awareness and to avoid accepting state aid in the event of damage.

Natural hazard insurance is currently only widespread in around 50% of households in Germany, while in countries such as France the density is 98%. Integrating this insurance into residential building or contents insurance could help to significantly increase the coverage rate. Nevertheless, the question of affordability remains, which poses challenges for both owners and the insurance industry. Time is of the essence and proposals for comprehensive reform are eagerly awaited.