Germany will mandate natural disaster insurance for homeowners

Elementarschaden insurance, covering damages from events like floods, will become mandatory for all new and existing building insurance policies. This change aims to protect homeowners from natural disasters. Currently, only about half of German homes have elementarschaden insurance. The new law, outlined in the coalition agreement, will automatically include this coverage in building insurance policies, though an opt-out option may be considered. This shift, expected to be finalized in a law next year, will likely increase insurance costs. The government also plans to introduce a state reinsurance program for elementarschäden.