Insurance cover for taking in refugees
An increasing number of people from Ukraine are seeking refuge in neighbouring European countries. Germany is also expecting a large number of refugees. Many of them will depend on aid. Above all, alongside monetary aid and donations of supplies, they will need a place to live.
When considering taking in refugees, housing companies face the question of what requirements must be met to retain their insurance cover, and especially whether they need to notify the insurer that they are taking in refugees, and if so, when. As a matter of principle, the insurer must be notified immediately of circumstances that increase the risk. However, the question of whether the insurer must be notified in relation to living space simply being used by asylum seekers/refugees and an associated increase in risk is not so clear-cut.
We recommend notifying the insurer of the use of individual buildings by refugees at least when refugees become the predominate population in the buildings (partial vacancies are to be considered, i.e. expected, due to the increased risk). The risk situation will then be examined more closely, which may have implications for premiums and insurance conditions. Notifying the insurer too late may lead to an insurance payout being reduced or loss of insurance cover.
The insurer must always be notified of the use (or partial use) of a building as ‘refugee accommodation’ and it must be expected that the insurance cover will become significantly more expensive while payouts are reduced at the same time.
The existing insurance should be reviewed regularly under these criteria. If you have any questions, please feel free to contact us.