Instead of new duty
Insurers propose a surcharge for all homeowners
02/04/2026 – 1:58 p.mReading time: 2 minutes
Insuring flood damage without compulsory insurance: GDV promotes its “Elementar Re” model. This would mean that everyone would pay a surcharge to keep high-risk houses insurable.
The General Association of the German Insurance Industry (GDV) has reiterated its rejection of compulsory insurance against natural hazards. At its annual media conference on Wednesday, the association instead promoted its “Elementar Re” concept, which was presented in December and is intended to ensure that residential buildings at high risk of flooding remain insurable – without any legal obligation.
The core of the GDV proposal remains unchanged: around 400,000 residential buildings in locations particularly at risk of flooding are to be pooled into a separate risk pool. Insurers could hand over these contracts to a special reinsurance solution (Elementar Re). Premiums for owners should be limited so that houses remain insurable even in risk areas.
The additional costs would not be borne by the state, but rather by all insured people in solidarity. There is a small surcharge on all residential building insurance. “Many people make a very small contribution so that it doesn’t become life-threateningly expensive for a few,” says Rollinger, summarizing the idea. Read here what natural hazard insurance covers.
Even in the event of very large disasters, the concept provides clear limits. Initially, private reinsurance solutions and an industry-financed security fund should step in. Government intervention would only be planned if insured damage exceeded 30 billion euros. The state would not be a permanent helper, but would only step in in exceptional cases.
Currently, 57 percent of active residential building insurance policies include elemental protection. According to GDV, this is an increase of three percentage points compared to the previous year and therefore an above-average increase. “We are well on the way to increasing insurance density even without a requirement,” said Rollinger. Devastating floods, such as those in the Ahr Valley, have played their part in raising awareness among customers here.
The GDV expects the parliamentary process to begin this year – initially with an agreement on key points in the federal cabinet, then towards the end of 2026 with a concrete draft law. The idea for Elementar Re has already been well received in political and regulatory circles.
In addition to the new insurance system, the GDV continues to call for more transparency when it comes to natural hazards. This includes a nationwide uniform natural hazards certificate and a publicly accessible online portal that clearly presents risks such as floods or heavy rain. Both are intended to encourage homeowners to take better precautions.
