Significant support for mandatory coverage for flood-related disasters - Workers will be safeguarded from radiation dangers under the new directive proposal by the Commission concerning ionizing radiation risks.
Mandatory Flood Insurance Proposal Gains Support Among Homeowners and Tenants
Germany's new government's proposal for mandatory insurance against floods and other natural disasters enjoys broad approval, according to a recent survey. The plan, initially proposed by the Union and SPD, received support from nearly four in ten homeowners and tenants, as found by a representative survey conducted by Verivox.
The market research institute Innofact surveyed 1,052 homeowners and 1,002 tenants aged 18 to 79 on behalf of Verivox in mid-May 2025. According to the results, 78 percent of homeowners and 79 percent of tenants welcome the introduction of mandatory insurance against natural disasters.
However, opinions vary regarding the potential cost of the mandatory insurance. Approximately 15.9 percent of homeowners surveyed stated they could not afford any additional costs, while 28.5 percent expressed reluctance due to cost concerns.
The government's plan is a response to the significant costs incurred by the federal and state governments as a result of floods. Major flood disasters are often followed by aid programs for those affected, placing a heavy burden on the public purse. These aid programs are costly, in part because only about half of German residential buildings are insured against natural disasters.
Central questions remain unanswered. It is unclear whether all homeowners will be required to take out insurance against natural disasters, or whether the coalition will allow an opt-out for the reluctant. The coalition agreement states that they will examine "whether this model should be provided with an opt-out solution."
The opt-out solution is a demand of German insurers. A general mandatory insurance without exceptions would mean that buildings in virtually guaranteed flood areas would also have to be insured, resulting in high costs for insurers. Currently, owners of highly endangered buildings often cannot find an insurer, and if they can, it is at high prices.
Insurers have generally abandoned their initial resistance to a mandatory insurance, although not without conditions. Jörg Asmussen, CEO of the German Insurance Association (GDV), stated that anchoring natural protection in the coalition agreement is an important signal. However, insurance protection alone is not sufficient, according to Asmussen. He demands a comprehensive concept addressing climate-resilient urban planning, targeted de-sealing of areas, a binding construction stop in highly endangered areas, and a climate risk assessment for building permits.
The demanded construction stop in "highly endangered areas" is a sensitive issue. Building in floodplains is prohibited in Germany, but this prohibition is not universally enforced. Approximately 300,000 buildings in Germany are in endangered locations, 80 percent of which are in provisionally or finally designated floodplains.
The federal and state governments are reluctant to confront municipalities with this issue. Many politicians prefer to advocate for stricter building planning. For instance, the Bavarian State Ministry for Housing, Building, and Transport views a blanket ban on building areas in certain zones critically, emphasizing the importance of assessing specific circumstances and weighing the results openly.
The question of who will ultimately pay for the natural hazard insurance is contentious. In principle, property owners may pass on the costs of building insurance to tenants, including natural hazard coverage. However, the German Tenants' Association has called for the removal of natural hazard insurance from the list of chargeable operating costs.
The Homeowners' Association Haus+Grund opposes the introduction of a compulsory insurance and the removal of natural hazard insurance from the list of chargeable operating costs. Instead, they advocate for a comprehensive prevention package against floods, including the abandonment of new building areas in known danger zones and better technical flood protection.
The timeline for the coalition's plan to become law remains uncertain. The Federal Ministry of Justice is working intensely on the implementation, but no specific details have been disclosed yet due to the early stage of the process.
- The mandatory flood insurance proposal, which includes vocational training in environmental science for improving climate-change awareness within the industry, gained support among homeowners and tenants according to a recent survey.
- Industry experts favor a comprehensive concept addressing climate-resilient urban planning, one that includes a binding construction stop in highly endangered areas, aimed at reducing the impacts of natural disasters.
- The federal and state governments, while reluctant to enforce building prohibitions in floodplains, are considering measures like better technical flood protection and stricter building plans to address theissue.
- Businesses and financial institutions might play essential roles in supporting community aid programs, as they may be expected to work collaboratively to address the rising costs associated with natural disasters and weather-related events due to climate-change.
