Insurance obligation against floods: Majority is for it!

Insurance obligation against floods: Majority is for it!

The current federal government plans to compulsory floods and other natural disasters. This initiative is the result of increasing financial burdens for the federal and state governments through aid programs after past flood disasters. A survey of the Verivox comparison portal shows that 78% of homeowners and 79% of tenants support such compulsory insurance. At the same time, however, 15.9% of the owners and 28.5% of tenants express concerns about additional costs for the insurance. Only around half of the German residential buildings are secured against elementary damage, which illustrates the need for a reformed insurance landscape, as well as from ZDF

The debate about compulsory insurance is particularly re -lived up by the flood events of the past few years. Three years ago, the damage caused by the Ahrflut had led to political demands for such insurance, but so far there is no concrete draft of the Federal Government. In this context, too, the large number of over 300,000 buildings in endangered layers is discussed - 80% of which are located in fixed flood areas. The insurance companies have largely given up their resistance to compulsory insurance, but they are calling for a comprehensive concept for construction planning.

political unity and resistance

Federal Chancellor Olaf Scholz has already spoken out for supporting heavily affected homeowners, among other things through a special assistance, while Bavaria's Prime Minister Markus Söder calls for national compulsory insurance. The political debate is shaped by the different positions of individual parties: While the SPD advocates compulsory insurance, the FDP expresses itself skeptically and warns of possible doubts of the insurance premiums in the next ten years. These developments are underpinned by the forecasts of the overall association of the German Insurance Industry (GDV), which expects an increase in damage caused by natural disasters in the future

Consumer protection officers are committed to switching to a solidarity insurance system in order to distribute the financial burdens in the event of a disaster. The discussion is stimulated by the findings of Wirtschaftsdienst indicate. In addition, the low insurance density is attributed to defective information and the expectation of state aid.

future prospects

The future design of an insurance obligation remains unclear. There is also the question of whether homeowners and tenants have to bear the costs for such insurance and whether exceptions are provided. In the political average, the German Association of Cities and Municipalities provides the appeal to the municipalities not to show any new construction areas in flood areas. Regardless of the different opinions, the political pressure for compulsory insurance remains, which will confirm that the federal Chancellor will be advised soon.