PantherMedia / Matteo Girelli
Asbestos remediation is complex and anything but cheap.
The planned changes to the Hazardous Substances Ordinance will result in high costs for residential building insurers. Insurers fear additional costs in the hundreds of millions.
The planned changes to the Hazardous Substances Ordinance will result in high costs for residential building insurers. Among other things, it is planned that asbestos tests must be carried out before repairs are carried out in buildings under certain conditions. “We expect additional costs for residential building insurers of over 190 million euros per year just from tests to determine whether there is asbestos in the building,” says Jörg Asmussen, General Manager of the German Insurance Association (GDV). These costs will place an additional burden on premiums for residential building insurance.
According to the Federal Government’s plans, the Hazardous Substances Ordinance is intended to lead to better occupational health and safety when dealing with asbestos. In buildings where construction began before the asbestos ban in 1993, asbestos may be present under certain circumstances. Therefore, renovation work and important repairs to the building structure may only be carried out after a risk assessment. Three quarters of the German housing stock would be affected, i.e. around 34 million apartments.
Implementation of the regulation difficult
Asmussen is critical of the practical implementation of the regulation. “There is a lack of specialists and laboratories, which leads to waiting times and delays in repairing the damage to the building,” says the GDV CEO. But the time factor plays a crucial role in claims settlement. Delays could mean that insurers are practically unable to act in many cases.
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“Only if insurers and their service providers respond quickly to claims can the extent of the damage be limited and the costs minimized,” says Asmussen. If, for example, a leak in a water pipe is not found and repaired quickly, consequential damage such as mold growth can occur and the damage can increase unnecessarily.
Asbestos testing using approved low-emission methods
Insurers believe that recognized low-emission processes (BT processes) could be used when dealing with asbestos. This would allow maintenance work or minor renovation work on firmly bound asbestos to be carried out quickly. However, such BT processes would first have to be developed, tested and recognized for certain applications.
However, the recognition of procedures is progressing slowly in Germany. The insurers are therefore appealing to those responsible to set additional transition periods at least for the repair of acute damage. At the same time, the insurers are calling on the German Social Accident Insurance (DGUV) to speed up the recognition of low-emission procedures and to simplify the associated procedures.
The Federal Council is expected to discuss the Hazardous Substances Ordinance in October. The entry into force, originally planned for the fourth quarter, is therefore being delayed even further.
