The discussion about compulsory insurance against natural hazards is not new. But after the current floods it is back. The states will discuss this with the Chancellor in June.
After the current floods in parts of Germany, the introduction of compulsory insurance against natural hazards is being discussed again. A spokeswoman for the Federal Ministry of Justice confirmed to the Augsburger Allgemeine that the states will discuss this with Chancellor Olaf Scholz on June 20th.
Federal Council had Compulsory insurance required
Natural damage is damage caused by nature. This includes damage caused by floods, storms, landslides or snow pressure if the roof collapses due to the weight.
The Federal Council More than a year ago, he called for the nationwide introduction of compulsory natural hazard insurance, also with reference to the flood disaster on the Ahr in 2021 with many deaths and immense damage.
Ministry of Justice has concerns
However, the FDP-led Federal Ministry of Justice is skeptical about a nationwide introduction. The spokeswoman said this does not solve the problem of the risk of damage. In addition, checking the insurance requirement for many millions of buildings in Germany is complex and cost-intensive.
The ministry also points out that compulsory insurance would make housing more expensive. According to estimates from the insurance industry, the costs per single-family home would be between 100 and 2,000 euros annually.
Very few have insurance
The German Insurers’ Association (GDV) announced that, on average, 54 percent of people across Germany are insured against all natural hazards. According to data from 2022, insurance density is highest in Baden-Württemberg at 93 percent. Until 1993, there was an obligation to insure against natural hazards here.
In the currently affected state of Rhineland-Palatinate, 46 percent have insurance to protect them against natural hazards; in Saarland the figure is 47 percent.
Current damage not yet foreseeable
The amount of damage caused by continuous rain and storms in Saarland and Rhineland-Palatinate is still unclear. The GDV said that the water had to have completely drained away before the damage could even be assessed.