Germany plans expanded insurance coverage for natural disasters

The German federal government is drafting legislation to improve insurance protection against natural disasters, such as floods, heavy rain, and earthquakes. Justice Minister Stefanie Hubig and Finance Minister Lars Klingbeil have outlined key points for a bill that would require newly concluded residential building insurance to include coverage for elemental damage, which is not currently the standard.

Minister Hubig emphasized the need for widespread coverage as climate change is expected to increase the frequency of extreme weather events. To ensure affordability for owners and tenants, the proposal suggests that property owners should face a maximum deductible of 20,000 euros in the event of a claim.

Jörg Asmussen, Managing Director of the German Insurance Association (GDV), supported the move toward better building protection but noted that mandatory insurance alone does not prevent damage. He advocated for mandatory prevention measures and state reinsurance for extreme catastrophes to ensure long-term affordability.