Financial expert informs: Natural hazard insurance against floods and storm damage

Financial expert informs: Natural hazard insurance against floods and storm damage

According to a report by www.ndr.de, the recent floods in northern Germany not only caused damage to dikes and houses, but also triggered a discussion about natural hazard insurance. Many homeowners in vulnerable areas are concerned about the rising costs and deductibles of these policies. At the same time, some people in these areas have no ability to purchase such insurance at all, meaning they rely on emergency government assistance in the event of a natural disaster. This situation raises the question of how long this situation will be sustainable and how the insurance landscape and government support will develop in the future.

The increasing number of extreme weather events and the associated damage are already having an impact on the natural hazard insurance market. Insurance companies will need to revise their risk assessments and may need to adjust their rates to deal with rising costs and claims. This could cause natural hazard insurance premiums to continue to rise in vulnerable areas and become unaffordable for some homeowners. At the same time, increasing demand for these insurance policies could lead to shortages and limited capacity in the market.

For consumers, this means they will increasingly have to face the challenges associated with extreme weather events. You may need to consider alternative insurance and preparedness measures to protect yourself against natural disasters. At the same time, the state's role in supporting homeowners without natural hazard insurance is likely to be increasingly discussed, as the number of those affected could increase.

Overall, the discussion about natural disaster insurance after the floods in northern Germany shows that the market and the framework conditions for insurance and government support with regard to natural disasters could change in the future. It is important to keep an eye on the impact on consumers and the insurance industry and make appropriate adjustments to ensure protection against extreme weather events.