German natural disaster insurance legislation

Overview

The German federal government, led by the Ministries of Justice and Finance, is drafting legislation to expand insurance coverage for natural disasters such as floods, heavy rain, and earthquakes. The proposal aims to mandate that newly concluded residential building insurance includes coverage for elemental damage, which is currently not the standard.

While approximately 98 percent of homeowners hold residential property insurance, only 59 percent are currently covered against elemental risks. The legislative changes seek to mitigate the average annual damage of two billion euros caused by extreme weather events. To maintain affordability, the proposal suggests a maximum deductible of 20,000 euros for property owners.

Industry representatives, including the German Insurance Association (GDV), have expressed support for improved building protection but noted that mandatory insurance must be accompanied by prevention measures and state reinsurance for extreme catastrophes to ensure long-term stability.

Entities

Germany · German Insurance Association · Federal Ministry of Finance · Stefanie Hubig · Jörg Asmussen

Timeline

1 day ago

[BUSINESS] 2 sources
German residential property insurance market overview and proposed natural hazard coverage
Germany's residential property insurance market saw 14.35 billion euros in premiums in 2025, while the government proposes new laws to mandate coverage for natural hazards like flooding.
6 days ago

[POLITICS] 6 sources
Germany plans expanded insurance coverage for natural disasters
Germany is planning new legislation to mandate that residential building insurance includes coverage for natural disaster damage, such as floods, while capping owner deductibles at 20,000 euros.

Sources

epochtimes.de · experten.de · fehmarn24.de · finanzen.at · lomazoma.com · onetz.de · openpr.de · pfefferminzia.de