Residential buildings insurance

Residential buildings insurance in Germany is under considerable pressure, leading to rising premiums and cancellations. Some insurers have announced premium adjustments of between 10 and 30 percent for the coming year. The underwriting agency AS-Direkt even informed its customers of increases of 70 percent for apartment buildings and 80 percent for single-family homes.

These developments result from higher labour and material costs as well as more frequent extreme weather events, which lead to high claims expenditure. In the first half of 2024, losses from natural hazards amounted to 3,9 billion euros.

As a result of these challenges, some insurers are withdrawing from certain segments or adjusting their underwriting policy, which leads to portfolio losses. According to an analysis by V.E.R.S. Leipzig GmbH, 26 of the 50 largest residential buildings insurers recorded declining contract portfolios in 2023. Seven of them each lost more than 5.000 policies, with the largest loss amounting to almost 200.000 contracts.

These developments highlight the tense situation on the residential buildings insurance market, which poses considerable challenges for insurers and policyholders alike. For a comparison, click on the text