How do you insure yourself against climate change?

Wildfires in Australia, blizzards in Texas, now flash floods in Germany, Belgium and the Netherlands: The growing likelihood of extreme weather has insurers and homeowners alike wondering how to best manage risk.

Many people in Germany were blindsided by the heavy rains and deadly flooding that hit parts of the country in mid-July. Now, as homeowners take stock of the damage, a second shock could be in store when they seek their insurance payouts.

Homeowner's insurance in Germany covers water damage; however, not if it's caused by heavy rains or natural flooding. For this, property owners need to purchase special coverage.

Such caveats, which are also the norm in many places besides Germany, pose problems in a world where unpredictable

weather is becoming the norm. Higher global temperatures can lead to increased precipitation, making floods more likely.

Insurance against severe

weather is an "urgently needed" addition to standard homeowner's insurance, said Sascha Straub, a finance lawyer working for a consumer consultancy

in Bavaria.

"The damage that water can cause is so immense that it can ultimately be a complete economic disaster for the individual," Straub told DW. "And now we see the likelihood that it will also affect those who haven't had to reckon with water before."

The cost for this supplementary coverage varies by location and type of property, Straub explained, and can range from 30% to as much as 300% of a standard homeowner's insurance policy for the most atrisk properties. Less than half of insurance holders in Germany have currently opted in to such extra coverage.

Who should pay for coverage?

Not everyone is ready to accept this cost, in particular not those who might need it most.

"Insurance becomes less attractive for high-risk households or farmers when premiums reflect the underlying risk," the European Commission

How can homeowners and insurers best protect properties in an increasingly unpredictable climate? Two brothers embrace after having lost their family home to catastrophic flooding in Altenahr, Germany