Extreme weather events with heavy rain and storms are becoming increasingly threatening, even in the summer months. How can you protect yourself against this? Do all homeowners now need natural hazard insurance or would that be over-regulation?
In Germany, only around 54 per cent of all private residential buildings are insured against damage caused by natural hazards such as flooding and inundation. As early as 2023, the Federal Council and the Conference of Minister Presidents stated that insurance against natural hazards is inadequate in Germany. The recent flood disaster in Bavaria and Baden-Württemberg has reignited the debate. The federal government is currently sticking to an obligation to offer insurance, while the federal states are calling for compulsory insurance.
Damage caused by storm, hail and lightning is covered by buildings and contents insurance. To cover damage caused by flooding, backwater, earthquakes or even snow pressure, natural hazards insurance is required, which is usually taken out in combination with or as an extension to buildings and contents insurance.
The consumer advice centres in Germany point out that insurers decide whether to accept an application for natural hazard insurance based on the claims history of the last few years or decades. In addition, policyholders must fulfil certain obligations to ensure that the insurance company actually pays out in the event of a claim. Whether natural hazard insurance makes sense depends on the individual case.
Climate change is making extreme events more likely. Researchers at the Karlsruhe Institute of Technology (KIT) are therefore looking at how cities and municipalities can make the supply and safety of the population more resilient to such crises. The focus here is on so-called microgrids. These are decentralised systems for generating, storing and distributing energy. They are designed to make large-scale power outages across the entire urban area less likely and ensure the functioning of critical infrastructures of general interest.
Photo: © Albrecht Fietz, Pixabay
