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Scholz on natural hazard insurance: “Everyone must get an offer”
21.06.2024, 01:37
Natural disasters such as flooding can threaten the existence of property owners. Despite this, only one in two people is insured. The states are pushing for compulsory insurance. But this is unlikely to happen any time soon.
The federal government is not giving in to the states’ demand for compulsory insurance against flooding and other natural hazards across the country. “The compulsory insurance demanded by the states would make living in Germany more expensive, entail a great deal of bureaucracy and would not relieve the state of financial liability,” said the responsible Federal Minister of Justice, Marco Buschmann, explaining the government’s negative attitude.
At the meeting between Chancellor Olaf Scholz and the state premiers, however, it was agreed to continue to discuss the issue. “We have in common that we want to improve protection against natural hazards and their consequences, but we do not agree on how to do this,” said the FDP politician. In his view, an obligation for insurers to offer every building owner insurance against natural hazards would be a better solution, and one that he would like to continue to promote.
Only every second private home is insured
After the meeting with the state premiers, Chancellor Scholz said: “Everyone must get an offer.” The states have long been calling on the federal government to create a legal regulation to introduce a nationwide compulsory insurance for natural hazards, which should also include storm surge damage. According to the states’ ideas, companies should have to offer a contract to every homeowner who wants to insure themselves against natural hazards.
So far, homeowners have not been able to find insurance for buildings in areas at high risk of flooding that is willing to cover the high risk. Only about half of the private buildings in Germany have natural hazard insurance.
The Green Party’s legal politician Lukas Benner also spoke out in favor of a nationwide insurance requirement against natural hazards. He said: “With the right design, it promotes prevention and ensures planning security for those affected as well as a solidarity-based distribution of costs.” The Bundestag member continued: “The premium should not be able to be passed on in full to the tenants.” Where extremely high premiums are required due to a high risk, a distinction should be made between existing buildings and new buildings in order to find fair solutions.