The insurance damage could add up to five billion euros. But many of those affected are not covered at all and have to hope for state aid. We are now discussing how that can be changed.
According to industry information, the insurance losses caused by the flood disaster in western Germany amount to four to five billion euros.
“The damage is likely to be even higher than that of the August flood in 2002 of 4.65 billion euros,” said the general manager of the Association of the German Insurance Industry (GDV), Jörg Asmussen, on Wednesday. The recent floods in Bavaria and Saxony are not included in the bill.
After heavy rains, flash floods and floods occurred in several regions in North Rhine-Westphalia and Rhineland-Palatinate last week. Whole areas were devastated. According to current figures, at least 170 people lost their lives. Roads, railroad tracks, bridges, cell phone masts, electricity, gas and water lines have been destroyed in many places.
This is the worst year for insurance companies since 2002. At that time, the insured storm damage, according to GDV, was 10.9 billion euros. In June of this year, heavy rain and hail had already caused an estimated insured loss of 1.7 billion euros.
But many of those affected are not insured against such disasters. In all of Germany, according to GDV, an average of almost half of consumers have natural hazard insurance that would step in in the event of natural events such as heavy rain, floods or landslides.
In the areas now affected, this proportion was even significantly lower: the insurer HUK-Coburg, for example, gives a rate of 39 percent for the corresponding regions in North Rhine-Westphalia. In Rhineland-Palatinate it is 36 percent. “Against the background of the current storms and the catastrophe, however, we are seeing increased demand,” the company says.
In view of these figures, a debate has broken out in Germany about how damage from flood disasters after heavy rain and floods can be better protected.
After all, around 1.2 million residential properties are located in areas that are particularly at risk from heavy rain, according to a study by the German Aerospace Center (DLR) with the Erfurt analysis company On-Geo. This is about regions where water easily collects locally after heavy rain, for example in sinks, explains Thomas Krauß, scientist at the DLR’s Remote Sensing Technology Institute. But heavy rain is a fragmented weather phenomenon and difficult to predict. Insurers also measure the risk of flooding, for example due to rivers trespassed, with a zone system made up of several hazard classes.
In addition, because of climate change, many experts anticipate that severe storms will occur more frequently in the future and could also affect regions that have so far been spared.
Some economic experts have therefore spoken out in favor of compulsory insurance against natural hazards, although they do not want to interfere with the principle that higher risks also lead to higher insurance premiums.
The Munich economist Monika Schnitzer, for example, considers compulsory insurance to be sensible, “if you want to prevent some from foregoing such insurance in the confidence that they will receive help from the state in the event of a disaster,” said the member of the Advisory Council of the “Wirtschaftswoche”. The industry itself, on the other hand, rejects compulsory insurance against extreme weather events.
Meanwhile, the owners’ association Haus & Grund advises private homeowners to take out natural hazard insurance. “If you have the right insurance coverage, you can look a little more relaxed into the future,” said association president Kai Warnecke. The association also rejects compulsory insurance against natural hazards. For owners with buildings in risk areas, the premiums could then become unaffordable, says Warnecke. A duty would make housing costs rise further.
The federal government has meanwhile decided to provide emergency aid of 200 million euros for the flood victims. The affected countries are to contribute funds in the same amount, so that up to 400 million euros are available. “It will not fail because of money,” emphasizes Federal Interior Minister Horst Seehofer. “People pay taxes for getting help in such situations.”
A construction fund worth billions is also planned. The exact amount of the fund should be decided when the extent of the damage can be better foreseen.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
