Elementarversicherung: Comprehensive protection against natural hazards and what it really includes
15 Jun 2025
5
Minutes
Katrin Straub
CEO at nextsure
Natural disasters are on the rise and can threaten financial livelihoods. An elemental insurance provides protection, but what exactly does it include? This article explains in detail which damages are covered and what you need to pay attention to.
The topic in brief and concise terms
The elemental insurance is an addition to the household or residential building insurance and covers damages caused by natural hazards such as flooding, heavy rain, backwater, landslide, earthquake, snow pressure, and avalanches.
The costs depend on the risk (ZÜRS zones), with only about 1.6 percent of German properties falling into the highest risk categories; 99 percent are insurable.
Court rulings show that terms like "flooding" and "land subsidence" are narrowly defined; a precise review of insurance terms is essential.
Overview of Property Insurance: These Natural Hazards Are Covered
The elemental insurance is an indispensable additional protection; it extends your home contents or building insurance. Typically, it covers damage caused by specific natural events. These natural hazards are usually included:
Flooding, including heavy rain and backwater.
Landslide, subsidence, and earthquakes.
Snow pressure and avalanches.
Volcanic eruptions (very rare in Germany).
It's important to note that storm and hail damage is often already covered by the basic building insurance coverage. Elemental insurance focuses on the rarer, but often more catastrophic events. Without this additional protection, affected people could face costs of tens of thousands of euros; the coverage applies to repairs, renovation, or even reconstruction. The exact terms vary depending on the provider. Therefore, a close examination of the policy is essential.
Cost Factors and Risk Assessment: Understanding the ZÜRS System
The cost of natural hazard insurance depends on several factors. The decisive factor is the individual risk of your place of residence. Insurers use the zoning system for flooding, backwater, and heavy rain (ZÜRS) for this. This system divides Germany into four hazard classes (GK):
GK 1: Flooding statistically less frequent than once every 200 years.
GK 2: Flooding statistically once every 100 to 200 years.
GK 3: Flooding statistically once every ten to 100 years.
GK 4: Flooding statistically at least once every ten years.
The higher the hazard class, the higher the contribution. According to the GDV, only about 1.6 percent of all properties are in the high-risk classes GK 3 and GK 4. Sparkasse states that even 99 percent of all houses are insurable without difficulty. Besides the ZÜRS zone, the construction method, previous damage, and the chosen deductible also influence the premium. A comparison of building and contents insurance including natural hazard protection is advisable. According to GDV, the average damage from natural hazards can exceed 5,500 euros, with individual damages even exceeding 300,000 euros.
Exclusions of coverage: When the natural hazard insurance does not pay
Despite comprehensive protection, there are situations where the elemental insurance does not provide coverage. It is important to be aware of these exclusions. A common exclusion pertains to damage caused by groundwater. If groundwater rises from below into the basement without surfacing, many insurers do not pay. The situation is different if groundwater rises to the surface and then causes flooding. Additionally, damage caused by storm surges is usually not covered. In cases of backwater damage, insurers often only provide coverage if a functioning backwater valve is present. Subsidence caused by human activities, such as mining, is also usually excluded. In these cases, the responsible party's liability insurance may apply. Damage caused by snow falling from trees is often not insured as snow pressure damage. Read your insurance policy carefully to be prepared in the event of damage, such as a reported hail damage.
Legal Pitfalls: Current Judgments and Definitions
The interpretation of insurance terms often leads to legal disputes. Courts must then determine exactly what is meant by terms like "flood" or "subsidence." The Bamberg Higher Regional Court ruled (Case No.: 1 U 87/14) that a "flood" within the meaning of the terms requires the inundation of the entire insured property. In this case, water ingress into the basement following heavy rain was not sufficient. The insured location includes more than just the building. On the topic of subsidence, the Deggendorf Regional Court ruled (Case No.: 23 O 445/19) that damage caused by settlement in soft ground is not covered. An insured "naturally occurring subsidence" only occurs if the ground sinks over naturally formed cavities. These rulings show how important precise wording and understanding the Insurance Contract Act (VVG) are. Advice from Haus und Grund or experts can be helpful here.
Compulsory Elemental Insurance: The Political Debate in Germany
In light of increasing damage from extreme weather, there is an intense discussion in Germany about the necessity of mandatory elemental insurance. Currently, only about 52 percent of households have such coverage (as of the end of 2022). In Baden-Württemberg, where there used to be a requirement, it's around 94 percent. The German government presented a report in December 2022 outlining the key points of a possible mandatory insurance. This report emphasizes the need for risk-based premiums and ensures that property owners should not face excessive burdens. Proponents argue that mandatory insurance would relieve the public from ad-hoc assistance and protect livelihoods. Opponents see constitutional hurdles and are calling for stronger prevention measures. The coalition agreement of the current federal government stipulates that new residential building insurance policies should only be offered with elemental coverage. Whether there will be an opt-out option is still uncertain. The question, whether you must have building insurance, could soon be expanded to include the elemental component.
Optimal Protection: Recommendations for Action and Expert Tips
Deciding for or against elementary insurance should be well-considered. First, assess your individual risk. Do you live in a known risk zone (categories 3 or 4)? Even though only 1.6 percent of addresses are affected, heavy rain can occur anywhere. Our expert tip: Determine what your homeowners insurance covers and which additional options are sensible. Pay attention to the precise definitions of damage events and exclusions. Compare offers from different insurers, as premiums and conditions can vary. Also consider the amount of the deductible. A waiting period of two to six months after contract conclusion is common. For comprehensive coverage, it's important to know who pays for the homeowners insurance and how elemental damage is integrated. An individual risk analysis helps find the suitable protection.
Request your individual risk analysis now: Have your insurance situation checked for free and receive concrete optimisation suggestions.
More useful links
The German Insurance Association (GDV) offers a data service on natural hazard reports, containing important statistics and analyses.
The Federal Environment Agency (UBA) provides comprehensive information on adapting to climate change, including strategies and measures.
The German Weather Service (DWD) provides detailed information on climate change, its causes, and expected impacts.
The Federal Office of Civil Protection and Disaster Assistance (BBK) offers important information on risk management and preparedness for natural disasters.
The Federal Statistical Office (Destatis) publishes current environmental statistics, providing insights into various environmental areas.
The Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) presents the German Adaptation Strategy to climate change, highlighting measures to reduce risk.
The Flood Warning Centres offer up-to-date information and warnings on flood situations in Germany, including water levels and forecasts.
FAQ
What exactly does the elementary insurance cover?
The element insurance covers financial losses to your insured property (building or household contents) caused by certain natural events. These include flooding (also due to heavy rain), backwater (as a result of precipitation or flooding), earthquakes, subsidence, landslides, snow pressure, and avalanches. Typically, it is an additional component to households or building insurance.
Do I need elemental insurance if I don't live in a flood-prone area?
Even if you do not live in a designated flood risk area (e.g., ZÜRS GK 3 or 4), having an elemental insurance can be worthwhile. Heavy rainfall events can occur anywhere, leading to local flooding or water backup. Only a small percentage of buildings are located in the highest risk zones, but damage caused by heavy rain is an increasing threat.
What is the difference between flooding and backwater in the insurance terms?
An 'inundation' is usually defined for insurance purposes as occurring when water superficially enters the insured property and floods it. 'Backwater' refers to water that is forced back into the building from the drainage pipes due to weather precipitation or flooding. For coverage against backwater damage, a functional backwater protection system is often a prerequisite.
How do insurance companies define an insured "subsidence"?
Court rulings have shown that an insured "naturally induced subsidence" is interpreted narrowly. It generally only occurs when the ground sinks above a naturally formed cavity. Damage caused by settlement due to soil conditions (e.g., soft clay) or drying is often not covered.
Does the elemental insurance also cover the costs for cleanup work or a hotel stay?
Yes, as part of the elementary insurance within the home insurance policy, costs for repairs, drying out, renovation, and, if necessary, demolition and rebuilding of a house of equivalent value are typically covered. Necessary costs for temporary accommodation (hotel costs) or loss of rent can also be insured if the building becomes uninhabitable. The specific conditions are detailed in the individual contractual terms.
Is there a waiting period before the protection of the elemental insurance takes effect?
Yes, waiting periods are common with basic insurance policies. These can range between two and six months after the contract is concluded, depending on the insurer and the policy. This means that damage occurring within this period may not yet be covered.
