Financial expert warns of inadequate protection against extreme weather in Saxony - insurance gap threatens to become expensive

Financial expert warns of inadequate protection against extreme weather in Saxony - insurance gap threatens to become expensive

According to a report by www.zeit.de,

The Saxon Switzerland-Eastern Ore Mountains district has suffered the most severe damage from extreme weather in the country over the past 20 years. Storm, hail and floods caused an average of 11,400 euros in damage per building, according to the General Association of the German Insurance Industry (GDV) based on its new long-term balance sheet. The city of Dresden (around 8,700 euros) and the district of Meißen (7,400) follow in second place. The insurance companies attribute this primarily to the immense damage caused by the August flood in 2002.

The insurers' information shows that only around half of the buildings in Saxony (51 percent) are insured against natural hazards and the consequences of extreme weather are therefore also covered. This low insurance rate suggests that many owners and tenants in Saxony are not adequately protected.

The low insurance rate and the high damage costs caused by extreme weather represent a major economic burden. If the federal and state governments do not ensure adequate protection for houses and cities, building insurance will become more expensive and many owners and tenants will be significantly burdened. Without prevention, the insurance gap in the event of natural hazards cannot be closed.

These developments could cause property costs in these affected areas to rise as insurance premiums rise and investment in protective measures is required. In addition, government resources to deal with extreme weather damage could also increase, which could lead to an increased burden on public budgets. It is important that the government and private sectors work together to implement prevention measures and mitigate the effects of climate change.