Financial Expert Council: New contracts from the city of Mindelheim bring higher costs for building insurance

Financial Expert Council: New contracts from the city of Mindelheim bring higher costs for building insurance

According to a report by www.augsburger- Allgemeine.de,

The city of Mindelheim is facing challenges related to its building insurance. After the previous insurance company Helvetia Schweizerische Versicherungs-AG canceled the contract for “business policy reasons”, the city had to put the contract out to tender again. After the new provider Signal Iduna and the Württemberger insurance company involved did not want to continue the contract, the city had to find a new insurance company. The cheapest offer came from the Bavarian Insurance Chamber, but it also entailed higher costs. Insurance protection against storm and hail damage is becoming more expensive, and the city has also taken out natural hazard insurance that covers damage caused by natural forces such as volcanic eruptions.

The situation in Mindelheim shows that insurance premiums for urban buildings can increase, especially due to expensive water damage in the past. The higher cost of the new insurance is expected to put a strain on the city's budget and could lead to savings in other areas. This case also highlights the need to protect against natural disasters such as volcanic eruptions, which means additional financial costs for the city. This could also prompt other cities and towns to review their insurance contracts and potentially prepare for higher costs and additional risks.