Germany wants new home insurance policies to include natural-hazard cover automatically. The justice and finance ministries published joint plans on October 21, 2026.
New building insurance policies would include natural-hazard cover automatically. Two models are under discussion for how that works:
- Standard model: deductible capped at 10% of the claim, up to €20,000.
- Minimum insurance (Mindestversicherung): a higher deductible, up to 50% of the claim or €100,000, in exchange for a lower premium.
Existing policyholders would not be switched over right away. Insurers must first offer them the add-on.
Existing policyholders who do not reply within one year would get cover added automatically. They would have to actively opt out, not opt in.
The ministries are also weighing a related landlord rule. It would stop landlords passing the extra premium on to tenants.
NOTE: Germany’s plan for mandatory natural hazard insurance is a discussion paper, not a bill. That means it is not law yet.
States and industry can comment until December 2, 2026. A full draft law is not expected before early 2027. The deductibles, the opt-out rule, and the reinsurance question can still change.
Insurer group GDV says the ministries’ mandatory natural hazard insurance plan falls short. Its head, Jörg Asmussen, argues that insurance alone prevents no damage. He wants two changes to the ministries’ plan:
- Binding prevention rules.
- The state reinsurance the 2025 federal coalition agreement promised.
Environmental group Urgewald raises a similar worry. It says most of the financial risk still sits with homeowners.
Why Does Germany Want Mandatory Natural Hazard Insurance?
About 41% of German homes carry no natural-hazard (Elementarschaden) cover. Yet 98% have some building insurance (Wohngebäudeversicherung), the GDV insurance association says.
Flood and heavy-rain damage costs about €2 billion a year on average. The state paid roughly €30 billion in aid after the 2021 Ahr Valley flood.
States have demanded a federal mandate since the 2021 flood. They repeated the call at the October 2025 Minister-Presidents’ Conference.
The 2025 coalition deal promised state reinsurance and uniform rules. It also floated a possible opt-out for homeowners.
