Property owners generally support mandated coverage for home damage due to natural elements.
In response to escalating environmental hazards, a mandatory insurance policy for elemental damages has become a key provision in Germany's coalition agreement, receiving broad support from homeowners and tenants.
According to a survey conducted by Verivox, a German comparison portal, 78% of homeowners consider this measure appropriate, with 79% of tenants concurring.The average annual premium homeowners are prepared to pay for such coverage amounts to 286 euros. Nevertheless, concerns regarding escalating costs emerge as 16% of homeowners cite inability to shoulder additional expenses for their properties, with a quarter (29%) expressing unwillingness to bear any extra costs.
Moreover, 61% of homeowners surveyed express worry about a potential increase in natural disasters in their regions. Among those apprehensive, 86% support the mandatory insurance.
While public support for the new measure is evident, discussions about its financial implications are mounting. The amount required for protection depends on factors such as the value, size, and location of the property. In high-risk regions, annual costs can reach the thousands, according to Aljoscha Ziller, an expert at Verivox.
Interestingly, France already employs a mandatory insurance system for elemental damages, but the premiums do not depend on residential risk factors. Instead, they are decided based on the value of the insured property. Only one in five German homeowners (20%) supports this system, while a third (33%) advocate for self-reliance and oppose redistribution. 38% favor a cost limit, albeit not for pooling resources among all policyholders.
Concurrently, a significant majority of homeowners (79%) also endorse a building ban in flood-prone areas. Among tenants, support for such regulations stands at 68%.
As the federal government finalizes plans for mandatory insurance, it is crucial to address affordability concerns and examine potential waiver options. According to Federal Minister of Justice, Stefanie Hubig, deliberations are underway on whether insurance coverage can be exempted under specific conditions-an "opt-out" solution that finds favor with 68% of homeowners.
It is essential to note that Germany lags behind France in terms of implementation, where mandatory insurance has been in place for some time. Discussions surrounding fairness, affordability, and the effectiveness of these insurance schemes continue to evolve as nations grapple with the financial and societal implications of climate change.
The Council could discuss the possibility of a foundation being established to help landlords and tenants afford the mandatory insurance for elemental damages, especially for those who are unable to shoulder additional expenses. Furthermore, to encourage sports participation among residents, the Council could consider building sports facilities in the housing complex, with the foundation potentially providing funding for maintenance and insurance.
