Verband Wohneigentum, Germany’s largest nationwide non-profit association for owner-occupied homes, rejects the compulsory natural hazards insurance proposed in the coalition agreement unless owners have the option to opt out. “That would be an unacceptable interference with individual autonomy and would amount to patronising homeowners,” criticises association president Peter Wegner.
Homeowners must have the freedom to decide, according to their individual circumstances, which financial obligations they wish to enter into and which they do not. Peter Wegner says: “The state must not shirk its responsibility when our building stock is at risk from the consequences of climate change caused collectively. Homeowners naturally assume responsibility themselves as well. But this enormous task can be addressed only by society as a whole.”
In favour of the opt-out solution
Verband Wohneigentum is urgently advocating the opt-out solution: insurers would be required to offer every household natural hazards cover when buildings insurance is taken out, but owners could decline it. Peter Wegner says: „Insurance against natural hazards is advisable in principle. The opt-out model preserves owners’ autonomy and ensures that households in high-risk areas can also obtain insurance cover.“
Against the opt-out solution
The Wohnen im Eigentum (WiE) consumer protection association welcomes the introduction of compulsory natural hazards insurance planned in the coalition agreement.
The association has long advocated compulsory insurance, supplemented by state preventive measures such as flood protection and stronger consumer protection in insurance terms. WiE therefore also welcomes the coalition agreement’s proposal that planning authorities in the federal states should assume responsibility for urban land-use planning in areas at particularly high risk of damage. This concerns state liability rules for the planning bodies that designate new development areas on previously undeveloped land despite substantial risks.
Unlike Verband Wohneigentum, WiE is critical of the opt-out solution under discussion. “An opt-out provision helps condominium owners only if waiving the insurance requires a unanimous resolution,” explains Dr Sandra von Möller. “Otherwise, the majority could override insurance cover to the detriment of individual condominium owners, which could threaten their livelihoods in the event of a claim.”
In favour of prevention
Verband Wohneigentum also advocates improved prevention by everyone involved. This includes general measures such as allocating building plots responsibly or upgrading sewer systems, as well as initiatives by individual homeowners who protect their properties with barrier systems or remove sealed surfaces from their land.