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Germany Weighs Mandatory Flood Insurance as Urgewald Pushes France-Style Plan

Germany faces a large insurance gap that shifts disaster costs onto taxpayers.

Overview

  • Urgewald, which published a new analysis Thursday, urged a compulsory elementar policy for all homeowners modeled on France’s CatNat system with low, uniform premiums.
  • The Justice Ministry said it is drafting measures to extend building policies to extreme-weather risks and stressed it will avoid overburdening owners and tenants, though no details or timeline are set.
  • Only about 57% of homes carry elementar cover even though 96% have basic building insurance, and risk-rated premiums typically run from about €60 to €1,000 a year with up to €1,200 in high-risk areas.
  • The insurance lobby GDV backs an opt-out model called Elementar Re with a private reinsurer and a pool for roughly 400,000 high-risk homes, a design Urgewald calls unsolidary and more expensive as several Länder favor a legal mandate.
  • After the €30 billion in public aid following the 2021 Ahr valley flood, Urgewald also wants insurers to seek cost recovery from fossil-fuel companies and proposes a climate fund financed by fossil-related firms for prevention and repairs.