MANDATORY 2026Building InsuranceNew Legislation

Natural Hazard Insurance Becomes MANDATORY 2026

CDU/CSU & SPD have decided: New building insurance policies only WITH natural hazard coverage. Existing contracts must be extended. Learn everything about the upcoming mandatory insurance.

NEW

The most important changes in 2026:

  • New contracts: Only available WITH natural hazard coverage
  • Existing contracts: Extension required by deadline
  • Opt-out option: Rejection possible if costs are too high
  • Only for residential buildings (no commercial properties)
January 2026
10 Min. Read
Insurance Experts

Historic turning point in German insurance law: The coalition of CDU/CSU and SPD has stipulated in their coalition agreement that natural hazard insurance for residential buildings will become mandatory. Currently, only 54% of private residential buildings in Germany are insured against natural hazards - this is set to fundamentally change in 2026.

NewThe New Regulations from 2026

What exactly is the coalition deciding?

1.
Mandatory for new policies:

Building insurance will in future ONLY be offered with natural hazard coverage. A building insurance policy without natural hazard protection will no longer be available.

2.
Extension of existing contracts:

Existing building insurance policies without natural hazard coverage must be extended by a deadline yet to be determined.

3.
Opt-out option:

There will be an option to decline natural hazard coverage - for example, if the costs would be disproportionately high. Details are still being worked out.

4.
Residential buildings only:

The mandatory requirement applies exclusively to private residential buildings. Commercial properties are excluded from this regulation.

5.
Government reinsurance:

A government reinsurance scheme will be introduced to ensure long-term insurability and keep the system stable.

Timeline and details:

Current status: The coalition agreement has been signed, but specific legislation is still pending.

Expected implementation: During the course of 2026. Exact deadlines, timeframes, and detailed regulations will be determined through legislation.

FactWhy is mandatory insurance being introduced?

54%

of residential buildings are
insured against natural hazards

46%

of homeowners have
NO protection against natural hazards

39%

of citizens support
the mandate (Ifo survey 2025)

Background to the decision:

  • Climate change: Extreme weather events such as heavy rain and flooding are increasing significantly
  • Catastrophic damage: The 2021 Ahr Valley flood caused over 8 billion euros in damage - many uninsured
  • Government aid: In the past, the government often had to step in during disasters - at the expense of all taxpayers
  • Solidarity principle: Through comprehensive insurance, the risk is distributed across everyone
  • Public opinion: 39% support the mandate, 34% are still undecided (only 27% against)

InfoWhat are Natural Hazards (Elementarschaden)?

Standard building insurance only covers some risks. Natural hazard damage is NOT automatically included - this is exactly what changes in 2026.

StandardBasic building insurance covers:

  • Fire: Fire, lightning, explosion
  • Water damage: Pipe burst, frost damage
  • Storm: From wind force 8
  • Hail: Damage from hailstones

NOT includedWithout natural hazard coverage:

  • Heavy rain - surface water entering the building
  • Flooding - from bodies of water
  • River flooding - river overflow
  • Backwater - from the sewer system

CoverageWhat does natural hazard insurance cover?

Water

Flooding & High Water

Damage from flooding of bodies of water, river flooding, and flash floods

Rain

Heavy Rain

Surface water entering the building due to extreme precipitation

Sewer

Backwater

Water from overloaded sewage systems pushing back into the building

Earth

Earthquake

Damage from seismic activity and earth tremors

Mountain

Landslide & Subsidence

Ground movements, subsidence, and slope failures

Snow

Snow Pressure & Avalanche

Damage from snow load on the roof or avalanches

TipWhat should homeowners do NOW?

1

Check your existing insurance

  • Do you already have natural hazard coverage? Check your policy!
  • If yes: Are the coverage limits sufficient?
  • If no: Add it voluntarily now - often cheaper than after the mandate takes effect
2

Compare and get coverage NOW

  • BEFORE the mandate, you can still secure better conditions
  • Compare multiple providers - price differences up to 300%
  • Pay attention to deductibles and waiting periods
3

Determine your risk zone

  • Check ZURS zone (Zoning System for Flooding) for your property
  • What hazard class is your building in?
  • Higher zones = higher premiums, but also higher risk
4

Take preventive measures

  • Install backwater protection (often required for insurance)
  • Check and maintain drainage system
  • Protect basement against water intrusion
  • Prevention can lower your premiums!
HomeCompare building insurance with natural hazard coverage

Free comparison - All providers - WITH natural hazard coverage

Pro/ConMandatory Insurance: Advantages and Disadvantages

Pro Advantages of the mandate

  • +
    Comprehensive coverage: All homeowners are protected against natural hazards
  • +
    Solidarity principle: Risk distribution leads to fairer premiums for everyone
  • +
    No government emergency aid: Less burden on taxpayers in case of disasters
  • +
    Financial security: Protection against total financial loss

Con Possible disadvantages

  • -
    Higher costs: Even in low-risk areas, homeowners must pay
  • -
    Less freedom of choice: Decision is mandated by the government
  • -
    Premium differences: Very high premiums possible in high-risk areas
  • -
    Implementation questions: Details still unclear (opt-out, deadlines, etc.)

SummaryConclusion: Acting now pays off!

Mandatory insurance for natural hazards is coming in 2026 - it is in the coalition agreement.Homeowners who act now can potentially secure better conditions before the mandate takes effect and demand increases significantly.

Act immediately:

  • Check existing policy for natural hazard coverage
  • If not available: Add it voluntarily now
  • Compare multiple offers
  • Determine your building's risk zone

Plan for the long term:

  • Preventive protection measures for your home
  • Have backwater protection installed
  • Monitor legislative developments
  • For new builds: Plan with natural hazard coverage from the start

Protect your home optimally - BEFORE the mandate takes effect!

Compare building insurance WITH natural hazard coverage now and find the best protection for your home. Free, non-binding, and transparent.