MANDATORY 2025 Building Insurance Premiums +13.6%

Building Insurance 2025: Natural Hazards Now MANDATORY

The coalition has decided: Natural hazards insurance becomes mandatory! Only 54% of buildings currently insured. Premiums rise by average 13.6%. Learn everything about the new requirement and how to protect your property optimally.

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Key Facts at a Glance:

  • Coalition introduces mandatory natural hazards insurance
  • Premiums rise 2025 by average 13.6% (some up to 40%!)
  • Only 54% of buildings currently insured against natural hazards
  • 2024: EUR 5.5 billion in weather damage
January 2025
9 Min. Read
Property Experts

Historic change for homeowners in Germany: The new coalition of CDU/CSU and SPD has determined in the coalition agreement that natural hazards insurance will become mandatory in the future. At the same time, premiums for building insurance are rising significantly in 2025. What does this mean for you as a homeowner? All important information at a glance.

Natural Hazards Insurance Becomes Mandatory

What the Coalition Decides:

Mandatory for New Policies:

Building insurance will only be offered WITH natural hazards protection

Existing Policies:

Current insurance will be extended to include natural hazards coverage by a deadline

Opt-Out Option:

Coverage may be declined (e.g., due to high costs) - details to follow

State Reinsurance:

For long-term reinsurability, state reinsurance will be introduced

What are Natural Hazards?

Natural hazards are damage to buildings caused by natural perils that are NOT covered in standard building insurance.

Covered Natural Hazards:

  • Flooding & High Water
  • Heavy Rain & Backwater
  • Snow Pressure & Avalanches
  • Landslide & Subsidence
  • Earthquake & Volcanic Eruption

Standard Building Insurance:

  • Fire & Blaze
  • Water Pipe Damage
  • Storm & Hail (from wind force 8)
  • Lightning Strike & Surge

Current Situation in Germany

54%

of buildings insured against
natural hazards

46%

of buildings have
NO protection

€5.5B

Weather damage
in 2024 alone

Why is it Becoming Mandatory?

  • Climate Change: Extreme weather events increasing significantly
  • High Damages: Billions in damage from storms (Ahr Valley 2021: over €8B)
  • Underinsurance: Almost half of homeowners without protection
  • Solidarity Principle: Risk distribution among all insured

Premium Development 2025

Drastic Premium Increases

Average Increase:

  • +13.6% additional to index adjustment
  • • Inflation adjustment 2025: only +2.6%
  • Some rates rise up to 40%!

Causes for Increases:

  • • Damage inflation from costlier repairs
  • • Increased material costs (wood, building materials)
  • • Higher craftsmen costs
  • • Increase in extreme weather events

Costs for Natural Hazards Protection

Additional costs for natural hazards protection vary greatly by risk zone:

Low Risk

+10%

Surcharge on premium

Medium Risk

+38%

Average surcharge 2024

High Risk

+360%

Maximum surcharge

What Homeowners Should Do NOW

1

Review Existing Insurance

  • • Is natural hazards protection already included?
  • • What coverage amounts are insured?
  • • Does contract run at optimal time?
2

Compare & Secure BEFORE Mandate

  • Secure better conditions now
  • • Get multiple quotes
  • • Add natural hazards protection voluntarily
Compare Building Insurance

Free Comparison • All Providers • WITH Natural Hazards Protection

Conclusion: Act NOW!

Mandatory insurance for natural hazards is coming - that's decided. Homeowners should use the time until legal implementation to position themselves optimally. Those who compare and sign up early may still secure better conditions before the mandate takes effect.

Act Immediately:

  • • Review existing insurance
  • • Add natural hazards protection now
  • • Compare multiple quotes
  • • Determine risk zone

Plan Long-term:

  • • Implement preventive measures
  • • Adjust coverage amounts
  • • Review rates regularly
  • • Monitor legal developments

Protect Your Home Optimally - BEFORE the Mandate!

Compare building insurance WITH natural hazards protection now and find the best coverage for your property. Free, non-binding, and in just 3 minutes.