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Destroyed house in the Ahr valley: endangered locations, on the other hand, can hardly be insured
Photo: Klaus W. Schmidt / imago images / Bonnfilm
After the flood disaster in Rhineland-Palatinate and North Rhine-Westphalia, insurance companies are showing a significantly higher level of interest in natural hazard insurance. The low pressure area "Bernd" has increased the demand for such policies, which cover damage in natural events such as floods and floods, noticeably among sales partners, reported Ergo-Versicherung in Düsseldorf. Debeka from Koblenz said that the number of inquiries and applications for protection against other natural hazards had increased significantly since the flood. "Existing contracts will be expanded accordingly."
HDI, which is part of the Talanx Group, is also reporting greater interest.
There are currently "more inquiries about elementary coverage from private customers as well as from small and medium-sized companies and self-employed," it said.
Allianz Germany made a similar statement.
"Our agencies are being actively approached," said a spokeswoman.
Customers recently bought significantly more "extreme weather protection modules".
After the severe flooding in West Germany, the debate has flared up about how damage from flood disasters can be better protected.
The usual standard policies in building insurance include storms and hail, but not floods, floods or landslides - this must be additionally covered by natural hazard contracts.
Up to 5.5 billion euros
"Shortly after a natural disaster like the one at the moment, the attention for such events is high," said a spokesman for the insurance chamber affiliated with the savings banks. Something similar could already be observed in 2016: At that time, after severe flooding in Bavaria and Baden-Württemberg, there was a leap across Germany with an increase of eight percent in elementary contracts. The usual growth rate is lower with an annual increase of four to five percent, according to figures from the insurance association GDV.
According to the latest GDV estimates, the flood disaster in Germany is likely to cost insurance companies in Germany up to 5.5 billion euros.
Almost two thirds of the damage occurred in Rhineland-Palatinate and almost one third in North Rhine-Westphalia.
Around 40,000 cars were damaged or destroyed by the floods, as well as damage to buildings.
Allianz alone expects compensation payments of more than 500 million euros to private and corporate customers.
HUK-Coburg noted that many customers have so far refused elementary insurance despite the increasing risks in the wake of climate change.
In view of the flood something has changed here.
R + V has had a different experience, having observed a higher demand for insurance cover for other natural hazards for years.
Less than half of the houses are insured
With current progress, however, it could take decades before the vast majority of houses in Germany are insured against natural hazards.
According to GDV figures, it is currently less than half of the buildings, namely 46 percent.
However, that is more than twice as many as two decades ago.
The insurance industry has an interest in selling policies against natural hazards and is promoting them in a targeted manner.
However, the GDV rejects any obligation to insure against natural hazards.
In some areas, the policies are less urgent as the likelihood of flooding is low.
Other endangered locations, for example on rivers, can hardly be insured.
The providers held back on the question of whether natural hazard policies could become more expensive after the flood.
It is still too early for an answer.
The contributions to insurance against natural hazards depend on the probability of flooding, backwater and heavy rain.
The basis for this is an industry-specific four-stage geographic information system for assessing natural hazards.
In the lower classes, where the risk for homeowners is very low, the policies are cheap.
In the highest, however, high premiums are due, and some insurers do not offer any policy at all.
Big regional differences
The strong thunderstorms of the past few years and the subsequent spontaneous flash floods also hit streets and places that were actually largely safe from flooding.
The large regional differences are striking: In Baden-Württemberg - where elementary insurance was previously mandatory for homeowners - 94 percent of buildings have elementary insurance, in Bremen, however, only a good fifth.
A second point is also noticeable: elementary policies are available as additional components of building insurance and also separately for household effects.
In this latter category, the insurance density is much lower, according to GDV it was only 19 percent in 2019.
If a flood destroys the washing machine, dryer, home sauna, expensive home cinema or other equipment that is often housed in the basement, this can also be very expensive.
mik / dpa-AFX
