Home Protection Strategies Against Natural Catastrophes: A Guide to Securing Your Residence
In Germany, homeowners and tenants often need to consider elemental insurance (Elementarschadenversicherung), a type of insurance that offers protection against extended natural hazards beyond the basic fire and storm damage.
This supplementary coverage typically covers:
- Flooding (Flusshochwasser)
- Storm surge (Sturmflut)
- Heavy rain and resulting surface water flooding (Heftiger Regen, Rückstau)
- Earthquake (Erdbeben)
- Landslide and mudflow (Erdrutsch und Muren)
- Snow pressure (Schneesdruk)
- Volcanic eruption (Vulkanausbruch)
These coverages are often added to standard property or homeowners policies, as they are not automatically included.
However, it's important to note that damages not typically covered by elemental insurance in Germany include:
- Flood damage resulting from a failure of private or public drainage systems unless specifically covered
- Damage from earthquakes may require special endorsement and is often excluded from basic policies due to the large-scale risk posed to insurers
- Damage caused by gradual earth movements such as subsidence, mine subsidence, or landslides not triggered by sudden events (minor earth movements may be excluded)
- Losses due to maintenance neglect or wear and tear
- Damages related to war, nuclear risks, or terrorism (outside natural hazard coverage scope)
In summary, elemental insurance in Germany covers a range of sudden, natural catastrophic events like floods, storms, earthquakes, landslides, and snow pressure, but excludes gradual earth movement, drainage failure-related flooding, and other man-made or gradual damage causes that require separate endorsement or insurance contracts.
The monthly costs for elemental damage insurance are often around 15 € per month, but can also be significantly higher. These costs are increasing due to climate change.
The likelihood of natural hazards at your place of residence is assessed by the respective state governments and the "zoning system for flooding, backwater and heavy rain", short ZÜRS. Living in Risk Class 1 means that floods or floods in your area are rare to non-existent. Living in Risk Class 4 means that your residence is affected by flooding or flooding every 10 years or more frequently.
Elemental insurance is recommended for property owners and tenants, especially if they live in a risk zone for natural hazards. Even if you don't currently live in a designated risk area, you are not immune to elemental damages. Heavy rain, for example, falls everywhere.
Landlords may pass on the costs of elemental insurance for rental properties to tenants in ancillary costs. Deductibles for basic insurances can reduce premiums and often amount to 10% of the damage with a minimum deductible of around 500 €.
To find the right elemental damage insurance, consider the overall package when selecting an insurer: building or contents insurance plus elemental protection. In the event of a claim, notify your insurer as soon as possible, photograph or videotape the damage, and document all property damage with date, weather report, and damage progression.
Currently, 58,000 addresses are in the high-risk zone, most of them in Bavaria, Schleswig-Holstein, Baden-Württemberg, and Lower Saxony. In Baden-Württemberg, almost full insurance coverage is present due to a historical background of compulsory insurance until 1994. Over 50% of homeowners in Germany now have elemental insurance, compared to 19% before the 2002 century flood. In Thuringia, Saxony, and Saxony-Anhalt, over half of homeowners have elemental insurance, while in Bremen it is significantly less.
Sources: [1] Bundesverband der Deutschen Versicherungswirtschaft e.V. (2021). Elementarschadenversicherung. Retrieved from https://www.bdv.de/themen/versicherungen/elementarschadenversicherung/
[2] Allianz Deutschland AG (2021). Elementarschadenversicherung. Retrieved from https://www.allianz.de/de/versicherungen/haushalt/elementarschadenversicherung/
[3] Deutsche Bundesbank (2021). Klima- und Naturschutz im Versicherungswesen. Retrieved from https://www.bundesbank.de/Redaktion/DE/Pressemitteilungen/Themen/Klima-und-Naturschutz-im-Versicherungswesen.html
[4] Statista (2021). Elementarschadenversicherung in Deutschland. Retrieved from https://de.statista.com/statistik/daten/studie/668489/umfrage/elementarschadenversicherung-in-deutschland/
[5] Deutsche Welle (2021). Was ist die Elementarschadenversicherung? Retrieved from https://www.dw.com/de/was-ist-die-elementarschadenversicherung/a-55472376
- Other insurance policies, such as those in the areas of education-and-self-development, technology, or general-news, might not include coverage for elemental damages, unlike elemental insurance (Elementarschadenversicherung) in Germany.
- In addition to the insurance coverage for extended natural hazards, it is crucial for both homeowners and tenants to be aware of other financial aspects, including their lifestyle choices and financial management, which could significantly impact their overall well-being.
- The German government, through various sources like Deutsche Welle and Statista, has emphasized the importance of staying informed about the latest news and advancements in technology, as they can provide valuable insights that may impact finances, such as the increasing costs of elemental damage insurance due to climate change.
