Mandatory Flood Insurance Gains Wide Support Among German Public
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The German government's plan to introduce mandatory insurance against floods and other natural disasters has garnered broad public approval, according to a recent survey. Conducted by Innofact on behalf of comparison portal Verivox, the survey found that 78% of homeowners and 79% of tenants endorse the initiative proposed by the Union and SPD.
The survey involved 1,052 homeowners and 1,002 tenants aged between 18 and 79 who reside in their own properties, polled in mid-May 2025. Cost concerns have emerged, however, with 15.9% of homeowners stating they cannot afford further expenses, and another 28.5% expressing reluctance to incur additional costs.
The planned insurance is a response to the billions in costs accrued by federal and state governments due to past flood disasters. Aid programs for victims often strain public resources due to the fact that fewer than half of German residential buildings are insured against natural disasters.
The survey findings reveal differences of opinion regarding the potential cost of the mandatory insurance. Central questions remain unanswered, such as whether all homeowners will be required to take out insurance, or whether the coalition will leave an option for those reluctant to comply. The coalition agreement stipulates an examination of whether an opt-out solution should be offered.
Insurers have softened their resistance to mandatory insurance, although not unconditionally, with the German Insurance Association (GDV) calling for a comprehensive concept that includes stricter urban planning and climate-resilient measures. The proposed construction stop in high-risk areas is a contentious issue, as building in floodplains is prohibited in Germany but exceptions are common. More than 300,000 buildings in Germany are located in dangerous areas, with 80% situated in provisionally or finally designated floodplains.
The government and municipalities are wary of confrontation in this matter. Many politicians shy away from advocating for stricter building planning, leaving the liability rules of planning bodies and the question of who will eventually bear the cost of the insurance unclear. The German Association of Towns and Municipalities has called for municipalities to generally avoid building new areas in flood-prone regions.
- The broad public approval for the mandatory insurance against floods and other natural disasters in Germany is not limited to just the cost implications, as the initiative also encompasses community aid, vocational training, and climate-resilient measures, as proposed by the insurers.
- The debate on the mandatory insurance plan in Germany extends beyond the financial aspects, with politics, general news, and business sectors discussing not only the cost but also the potential impact on businesses, urban planning, and the overall economy, given the significant number of buildings located in flood-prone regions.
