The Limited Times

Now you can see non-English news...

Countries require compulsory insurance for elemental damage to buildings

2022-06-02T15:57:45.859Z


After last year's flood disaster, a debate broke out about the financial consequences of climate change. The federal states are now demanding compulsory insurance against natural hazards.


Enlarge image

Damage to buildings in Ahrweiler (archive): only a fraction insured

Photo: SASCHA STEINBACH / EPA

The flood disaster last summer showed what effects natural disasters can have on entire regions.

Numerous people lost their lives and the damage ran into billions.

In order to better manage at least the financial consequences in the future, the federal states have now spoken out in favor of reintroducing compulsory insurance for natural hazards for all building owners.

The heads of government approved a corresponding request from Baden-Württemberg.

The federal government should now draw up a proposal for a regulation by the end of the year.

The justice ministers had previously determined at their conference in Schwangau in the Allgäu that such compulsory insurance is constitutionally possible.

Little protection

With natural hazard insurance, homeowners can at least protect themselves against the financial effects of extreme natural hazards such as heavy rain, flooding or flooding.

But even in Rhineland-Palatinate, which was particularly hard hit by the flood disaster, only a part does.

According to the General Association of the German Insurance Industry (GDV), only 42 percent of the buildings there are insured against natural hazards.

It's different in Baden-Württemberg, where 94 percent of real estate is insured against natural hazards.

In all other states, the rate is between 28 percent (Bremen) and 53 percent (NRW).

From the point of view of many experts, Germany is therefore only insufficiently prepared financially against catastrophes.

Consumer advocates insist on fundamental rights

From the point of view of consumer advocates, compulsory insurance represents a major encroachment on fundamental rights. The costs should not be underestimated either: the lowest level of insurance is available for less than 100 euros, according to data from Stiftung Warentest.

In the highest class, insurers often do not assume the full risk.

So there can be high deductibles and premiums of several hundred euros per year.

The insurance industry also emphasizes that compulsory insurance has narrow limits when implemented in accordance with the constitution.

In the end, it will only be possible to implement it with significantly limited insurance cover, for example only for high-risk buildings or only for new buildings. »

Existing buildings or buildings in areas that are not considered to be at high risk are then not insured.

The level of premiums and the question of whether insured persons in a particularly vulnerable region would have to pay more than others still have to be clarified.

rai/dpa

Source: spiegel

All business articles on 2022-06-02

You may like

News/Politics 2024-02-08T16:14:08.589Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.