Loss after severe storm surge
The homeowner is left with 800,000 euros in damages
May 5, 2026 – 12:40 p.mReading time: 2 minutes
A court has classified the devastating Baltic Sea flood of 2023 as a storm surge. A judgment with serious consequences for many homeowners.
Bad news for many homeowners: The Schleswig-Holstein Higher Regional Court (OLG) has classified the serious Baltic Sea flood of 2023 as a storm surge – even though the damage occurred deep inland. Many homeowners are left with their damages despite insurance coverage, because storm surges are generally not insured even in natural hazard insurance.
The owner of a residential complex had sued. During the flood in autumn 2023, the cellars of the facility were filled with water, and the plaintiff estimated the damage at 800,000 euros. The plaintiff’s residential complex is located in Schleswig on the Schlei, an arm of the sea that extends around 40 kilometers deep into the country. However, your insurance company refused to pay and invoked the insurance contract. In this case, damage caused by storm surges was excluded. Accordingly, the homeowner is not entitled to any money.
However, she resisted this. She argued: A storm surge includes not only a storm, but also a flood in the sense of the tides. This can be assumed along the coast, but not on the Schlei, which extends far inland. The damage was therefore not caused by a storm surge and therefore had to be paid for by the insurance company.
However, this argument did not convince the OLG. A storm surge is “an exceptionally high rise in water on sea coasts and in river mouths caused by an onshore storm,” the court stated. However, tides are not necessary for a storm surge. Schleswig’s distance from the Baltic Sea also doesn’t matter – after all, the water level of the Schlei in Schleswig depends on that of the Baltic Sea and the wind conditions there.
The judgment therefore has significance far beyond Schleswig. Both the Baltic and North Sea coasts are characterized by a large number of cuts. These include the Ems, the Weser and the Elbe in the North Sea as well as the Flensburg and Kiel Fjords in the Baltic Sea. There, too, flood damage caused by a storm surge is not covered by natural hazard insurance.
However, the judgment is not yet final. Although the Higher Regional Court ruled out an appeal, the plaintiff can still file a non-admission complaint with the Federal Court of Justice.
Consumer advocates repeatedly criticize the fact that people on the coast cannot protect themselves against storm surge damage. Only one insurer currently includes storm surge damage. Coastal residents are therefore usually advised to take structural measures to protect themselves against flooding. For example, it is possible to seal the basement so that no water gets into the building through light shafts and basement exits.
However, it is conceivable that the federal government will include storm surges in the scope of natural hazard insurance as part of its planned compulsory insurance for homeowners. However, a draft law is not yet available.
