New elementary protection: Consumer advocates warn of higher premiums!

New elementary protection: Consumer advocates warn of higher premiums!

In a new move, the federal government plans to make residential building policies compulsory, including elemental protection. This new regulation, which is currently being examined, should mean that insurance companies only have to offer their policies with elementary protection as standard. However, it remains unclear whether customers will be able to opt out of this protection in the future. Consumer advocates from Schleswig-Holstein and the owners' association Haus & Grund are skeptical and express concerns about potentially higher premiums, increasing bureaucracy and possible social imbalances. In Schleswig-Holstein, risks such as storm surges and groundwater rise are particularly relevant and may not always be covered. Anja Käfer-Rohrbach, deputy general manager of the insurance association GDV, describes the planned new regulations as a “good basis”, but at the same time warns that compulsory insurance is not able to prevent extreme weather events.

Despite this positive assessment, many questions remain unanswered, particularly regarding practical implementation, which experts believe could take some time.

Need for natural hazard insurance

The new regulation could prove to be advantageous as conventional home and contents insurance often does not offer protection against natural events such as heavy rain, floods or landslides. Natural hazard insurance is therefore essential to cushion the financial consequences of such events. While residential building insurance covers damage caused by storms, hail, lightning strikes, fire and tap water, protection against natural hazards must be explicitly listed in the insurance policy. Typical natural hazards that need to be insured include torrential rain, floods, earthquakes, landslides and subsidence.

In the event of damage, elementary insurance usually covers the costs of repairs, clean-up work, demolition and reconstruction. If buildings have become uninhabitable, the insurance also covers hotel costs for the affected residents. It is also interesting that such elementary insurance is only ever offered in conjunction with residential building or household contents insurance.

Risk assessment measures

It is important for homeowners to realistically assess their own risk of natural hazards. Risk and danger maps as well as online tools from insurers can help to determine the risk classes. In addition, the choice of insurance should be adapted to regional circumstances, and the sum insured should also be sufficiently high to cover the full repair costs.

In addition, it is advisable to obtain at least three offers for the additional element of natural hazard insurance before concluding the contract. In the event of a change of provider, it is advisable to obtain confirmation of coverage from the new insurance company before terminating the existing contract. After all, it’s not just price or premiums that matter; The overall package, including the deductible, should also be taken into account in the decision. The insured are aware that surcharges for natural hazard insurance are to be expected, especially in high-risk areas.

Overall, the introduction of elementary protection is seen as a step in the right direction, but concerns remain among the population about possible effects on premiums and bureaucracy. The detailed information and recommendations on necessary changes in the insurance landscape are provided by both kn online as well as from German craft newspaper provided.