The recent severe weather with massive rainfall and subsequent catastrophic flooding in southern Germany has reignited the debate about mandatory insurance for homeowners against natural disasters. This type of insurance would cover damages that fundamentally harm a property – such as flooding of entire floors or destruction by natural forces. Baden-Württemberg’s Minister President Kretschmann is in favor of such mandatory insurance. To discuss what this could mean for consumers in practical terms, SWR-Aktuell moderator Sebastian Felser spoke with Saidi Suliatu, the editor-in-chief of the financial guide „Finanztip“.
Suliatu emphasized the importance of being adequately prepared for natural disasters, especially in regions prone to floods, earthquakes, and volcanic eruptions. He recommended that homeowners carefully review their current insurance policies to ensure they have coverage for such events. While standard homeowners insurance typically covers damages from fire, theft, and certain weather events, it may not include protection against natural disasters. Therefore, Suliatu suggested considering additional coverage specifically for these risks.
In the event of a flood, earthquake, or volcanic eruption, the financial losses can be devastating. Without proper insurance coverage, homeowners may face significant repair costs or even the loss of their property. Suliatu advised homeowners to contact their insurance provider to inquire about adding supplemental coverage for natural disasters. While this may result in an increase in premiums, it could ultimately save homeowners from financial ruin in the event of a disaster.
Additionally, Suliatu recommended taking preventive measures to minimize the risk of damage from natural disasters. For example, homeowners in flood-prone areas can install flood barriers or elevate their electrical systems to prevent water damage. Those living in earthquake-prone regions can reinforce their homes‘ structures to withstand seismic activity. By investing in these protective measures, homeowners can reduce the likelihood of extensive damage and increase their chances of receiving insurance compensation in the event of a disaster.
Overall, the recent natural disasters in southern Germany have highlighted the importance of being adequately insured against floods, earthquakes, and volcanic eruptions. While mandatory insurance for homeowners may still be a topic of debate, it is crucial for individuals to take proactive steps to protect their properties and finances from the unpredictable forces of nature. By reviewing insurance policies, considering additional coverage, and implementing preventive measures, homeowners can better safeguard themselves against the potential devastation of natural disasters.