Take the Pulse: Most Homeowners Favor Mandatory Insurance Against Natural Calamities - But Affordability Concerns Linger
Majority backs compulsory coverage for homeowners against natural disasters' impacts - Homeowners Prefer Mandatory Insurance for Protecting Against Basic Damage
In a recent check-up, a whopping 61% of homeowners voiced their worry about a potential rise in natural catastrophes in their region. Out of these worried homeowners, an impressive 86% view a mandatory insurance policy as the solution.
However, the idea of mandatory insurance isn't sitting well with everyone's wallets. 16% of homeowners confessed they can't afford additional costs for their property, while another 29% aren't enthusiastic about bearing any extra fees. Among homeowners who currently don't have insurance against natural disasters, one in five admitted the reason being the cost.
Aljoscha Ziller, an expert from Verivox, sheds light on the financial aspect. He explained that the price for protection varies depending on factors such as the house's worth, size, and the risk zone it's located in. For houses in high-risk areas, annual costs can escalate to the thousands.
In France, where such insurance is obligatory, the premium isn't dependent on the residence's risk level, but on the insured property's value, as per Verivox. In contrast, only 20% of German homeowners support a similar system, according to the survey. One third (33%) believe everyone should shoulder their costs, and reject any redistribution. 38% support a cap on costs but not redistribution overall.
Simultaneously, a massive majority of homeowners (79%) back a prohibition on new construction in high-risk flooding zones. Support is also high among tenants, with 68% advocating for such regulations.
As per the coalition agreement, the federal government plans to introduce residential building insurance covering natural disasters in the future, and aims to enhance all existing contracts with such protection by a specific date. The finer details need to be scrutinized, stated Federal Minister of Justice Stefanie Hubig (SPD) in the "Augsburger Allgemeinen" on Friday.
The coalition agreement also mentions an examination of an opt-out solution for insurance coverage under certain conditions. According to a Verivox survey, 68% of homeowners find this the superior option.
The survey was commissioned by Verivox, with a total of 1052 homeowners and 1002 tenants age 18 to 79 participating. The results are representative of private homeowners and tenants across Germany in terms of age, gender, and federal state.
While discussions on mandatory insurance are gaining steam in Germany, the German Insurance Association states that only slightly over 50% of private households are currently insured against natural disasters like flooding. Calls for mandatory insurance are common, but the industry fears that it may encourage neglect of flood protection measures in Germany. As it stands, policies are often not even available in risk areas, or only at prohibitively high premiums.
- Survey
- Germany
- Verivox
- Mandatory Insurance
- Natural Catastrophe
- Coalition Agreement
- France
- The survey conducted by Verivox revealed that in Germany, a considerable 79% of homeowners support a ban on new construction in high-risk flooding zones.
- In France, where mandatory insurance against natural disasters is obligatory, the premium isn't based on the residence's risk level, but on the insured property's value.
- A significant number of homeowners, 68%, prefer an opt-out solution for insurance coverage under certain conditions, as suggested in the coalition agreement.
- The coalition agreement in Germany proposes the introduction of residential building insurance covering natural disasters in the future, with the aim to enhance all existing contracts with such protection by a specific date.
- The findings of the Verivox survey reveal that only slightly over 50% of private households in Germany are currently insured against natural disasters like flooding.
- As the discussion on mandatory insurance heats up in Germany, the German Insurance Association voices concerns that such a mandate might encourage neglect of flood protection measures.
- The support for environmental-science, climate-change, and policy-and-legislation, particularly regarding industry, finance, wealth-management, business, personal-finance, education-and-self-development, and personal-growth, is essential when assessing the community's stance on natural disaster insurance.
