Does homeowners insurance pay in the event of flooding?

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Lerato Khumalo

Homeowners insurance covers damage to your house. You should pay close attention to which risks are insured.

The most important things at a glance


The majority of the residents’ assets are often located in the house – which is why it is all the more dramatic when the home is destroyed. This is a danger that seems unlikely at first glance, but the consequences of the climate crisis are also being felt more and more strongly in Germany.

According to experts, the risk of forest fires and storms will increase significantly in the coming decades. Houses that at first glance appear to be stable and safely located can suffer great damage due to unforeseen events.

Of course, no one can insure themselves against the great psychological stress that comes with losing your own home. But you can protect yourself against the financial problems with homeowners insurance. We’ll show you what you need to know about it.

When it comes to home insurance, it is important to distinguish between basic protection and natural hazard protection. Basic protection includes three components:

  1. Protection against Fire – i.e. against damage caused by fire, lightning, explosion or smoke damage. The insurance also pays if a forest fire is the cause of the damage.
  2. The coverage of Tap water damagefor example in the event of a burst water pipe or if heating and air conditioning systems cause water damage.
  3. Protection against damage caused by Storm and hailAs a rule, storm damage from wind force 8 onwards is covered.

Some insurers offer a kind of modular system for basic cover. This means that you put together your own insurance cover and can, for example, only opt for fire and storm protection if you want.

This does have a positive effect on the annual premium you have to pay, but it also poses the risk of underinsurance.

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But beware: Anyone who has taken out basic cover would still be faced with a large financial hole after a flood disaster. Because only the additional elemental hazards module covers damage caused by flooding, earthquakes, snow pressure or even volcanic eruptions.

While the latter is rather unlikely, floods caused by heavy rainfall events are becoming increasingly likely due to climate change. Insurers therefore only want to offer private homeowners policies that include natural hazard protection in the future.

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Anyone who does not want the service must explicitly cancel it. This is stated in a position paper by the German Insurance Association (GDV). In addition, insurers have announced that they will no longer offer protection against flooding, heavy rain or backwater for new buildings in areas officially listed as flood zones.

At first glance, the offers from home insurers seem very similar, but it is worth comparing offers. For example, not all insurers cover damage caused by negligence.

But you should be careful, because a stovetop that you accidentally left turned off can lead to a destructive house fire. Damage to drainage pipes outside the property – which can quickly become very expensive – is not included in every insurance package.

Insurers calculate the premium for building insurance based on the size, living space, construction, age, value and location of the house. Anyone who lives in a new building and not in a flood zone pays less than someone who lives in an old building right by the river.

Cheap rates – including protection against natural hazards – for a new house with around 140 square metres of living space can start at just 150 to 200 euros, but there are hardly any upper limits to the premiums.

The location of the house is crucial for the insurance premium – especially if you want to insure against natural hazards. Insurers use a very specific system to classify how vulnerable a house is: the ZÜRS zones.

These hazard classes are divided according to the statistical frequency of floods. There are four levels in total. ZÜRS zone 1 is very safe; statistically, there is a flood there less than every 200 years.

According to an analysis by the GDV, more than 90 percent of homeowners live in this zone. 0.5 percent of all houses, however, are located in the most endangered zone – ZÜRS zone 4. Statistically, flooding occurs there once every ten years.