Experts calculate: Standard premium would make flood insurance more expensive - WiWo

Experts calculate: Standard premium would make flood insurance more expensive - WiWo

According to a report by amp2.wiwo.de, a uniform compulsory insurance against floods and heavy rain could significantly increase the costs of building insurance for most homeowners. Currently only around half of residential buildings are adequately insured. A uniform premium for natural hazard policies would cost 190 euros per year, compared to the current 80 to 120 euros that around 80 percent of homeowners in Germany pay.

Experts are concerned that the introduction of a uniform premium could create false incentives for homeowners to build again in vulnerable regions. According to the industry association GDV, the problem could possibly be solved through higher deductibles, so that homeowners in exposed locations would have to bear a larger share of the damage themselves.

These discussions and considerations have already had an impact on the insurance market. It is expected that rising premiums due to the introduction of a uniform premium could burden consumers. It remains to be seen to what extent politicians will respond to the recommendations and concerns of experts and associations and how this will ultimately affect the insurance industry and consumers.