Compulsory insurance against natural hazards: protection for your home!

Compulsory insurance against natural hazards: protection for your home!

Severe storms in Germany have caused enormous damage to real estate in recent years. Especially in the northern Allgäu, floods over a year ago led to livelihood hardship for many affected people. These events have drawn attention to the importance of insurance that can help with such damage. The introduction of a requirement for natural hazard insurance has therefore been discussed for a long time in politics and the insurance industry. This is also provided for in the current coalition agreement between the CDU/CSU and SPD, which obliges insurers to only offer new residential building insurance contracts with insurance against natural hazards, such as Allgäu newspaper reported.

Natural hazard insurance is essential to protect yourself against damage caused by natural events such as floods, backwaters and snow pressure. Natural damage is defined as damage caused by the action of nature. Unlike residential building and contents insurance, which covers storm damage, hail damage and lightning strike damage, natural hazard insurance is necessary to also provide protection for damage caused by floods, backwaters, earthquakes and snow pressure, as the consumer advice center makes clear ( Consumer advice center ).

The current status of insurance

According to consumer advice centers in Germany, only around 54% of private homes are insured against natural hazards. Many homeowners mistakenly assume that they are not at risk because heavy rain can cause widespread damage. Insurance cover against flooding occurs when water overflows its banks or properties are flooded by rain. It should be noted that damage caused by groundwater reaching the surface and entering a house is insured. Damage where groundwater does not come to the surface is not protected.

Backflow of water from drainage pipes is also insured, but only if there is a functioning backflow protection device. Important exceptions exist in the areas of earthquakes, subsidence or landslides, where these only apply to natural events; human influences are not insured in these categories. Additionally, snow pressure is covered if the weight of the snow causes the roof to collapse. However, there is no protection for damage caused by falling snow from trees.

Important information for homeowners

The impending introduction of compulsory natural hazard insurance requires homeowners to take a close look at their current insurance coverage. You should find out about the various types of insurance and the specific conditions in order to be financially protected in an emergency. The discussion and political measures in this area could not only protect many property owners, but also help to better address future existential threats from natural events.