Compulsory insurance against climate damage: what homeowners need to know!

Compulsory insurance against climate damage: what homeowners need to know!

On June 1, 2025, the Merz government in Germany announces a far-reaching reform: In the future, homeowners should have to take compulsory insurance against climate damage. The coalition agreement states that elementary protection insurance should become mandatory in order to better protect the population against natural disasters. Federal Minister of Justice Stefanie Hubig emphasizes the urgency of comprehensive insurance coverage in the event of floods and other maximum likelihood climate risks. The devastating flood damage in southern Germany, which caused damage of 4.1 billion euros in 2024, illustrates the need for this measure. According to Merkur , about half of the damage incurred was not insured, which is again based on the discussion about corresponding legal protection.

At the moment, over 50% of houses in Germany are insured against elementary damage, but that should change soon. Future residential building insurance are only offered with elementary damage coverage, and existing contracts must also offer this security up to a fixed deadline. In order to keep the financial risks for insurance companies in check, the government is planning state reinsurance. However, it remains unclear whether private owners can do without this insurance in certain cases.

climate adjustment instead of obligation?

Despite these measures, the overall association of the German Insurance Industry (GDV) warns that compulsory insurance alone is not sufficient to be effective against climate damage. General Managing Director Jörg Asmussen demands that the focus be on prevention. A climate -adapted planning, building and renovation should be a top priority to prevent damage in billions in billions. The insurance industry advocates the integration of prevention measures into the state building regulations. Among other things, this includes construction stops in flood areas and the distortion of areas to minimize the increase in sea levels and other climatic risks. Asmussen emphasizes the need for measures such as mandatory climate risk assessments in building permits and the establishment of a nationwide natural hazard portal to better inform and protect the public.

A nationwide compulsory insurance has been discussed against elementary damage for years. Especially after the Ahrtal flood in the summer of 2021, the debate has come to the fore. The GDV has submitted a catalog of claims that should be understood as part of a holistic approach for nature protection protection. Asmussen warns that the expectations of compulsory insurance that cannot prevent flood damage should remain realistic. The current proposals are not only a step towards insurance, but an invitation to actively act in the area of ​​prevention - because as I said, it is important not only to insure, but also to build and plan better. More on this can be found on the website of the GDV at GDV .