Hochwasservorsorge zwischen Staatshilfen und privater Versicherung

The recent flood events in Germany have demonstrated that the nation’s current system of private flood insurance is suboptimal. The article provides novel nationwide survey data on stated flood insurance penetration (suggesting that many households overestimate their own insurance coverage), damage compensation expectations (a significant share of the population expects governmental relief payments), and on the dissemination of private flood mitigation measures. Taking into account fundamental economic considerations and the empirical insights, the authors propose a limited compulsory insurance, covering only the most basic risks and leaving incentives for further private insurance and precaution.