Forest insurance: Strong roots for trees

Mr. Droll, a brief prognosis: How extensive will the forest damage be this year?

In my estimation, we should have reached the peak of forest damage by now. In total, there are around 11.5 million hectares of forest in Germany, of which approximately 500,000 hectares need to be reforested. The greatest damage has occurred in coniferous forests, especially spruce. This is mainly due to the dryness of recent years. As a result, the trees are so weakened that they can no longer defend themselves against the bark beetle, which has caused extremely extensive damage.

Why should forest owners insure their forests?

In view of the uncertain climatic developments and also with regard to the high sustainability of our forests, owners would be well advised to insure their property. This gives them financial leeway in the event of a claim and allows them to reforest in good time. And they can do so in an environmentally friendly way, which is of course very important. After all, it is simply unacceptable for someone to choose a spruce stand over a healthy mixed forest due to a lack of funds – and insurance coverage gives them this financial option.

What criteria must my forest meet to be eligible for insurance from you?

In principle, we can insure any forest against storm or fire that is registered as such in the land registry. However, our cooperation with the Ecclesia Group does not include liability insurance, only property insurance. This primarily concerns the obligations associated with afforestation. The product structure is as follows: in Germany, 98 percent of owners are small forest owners with an average of 2.5 hectares. For this vast majority, we have developed a flat-rate product that is designed for up to five hectares of forest and consists of fire and storm insurance. There is another flat-rate product for five to ten hectares of forest. For these forest owners, the entry in the land registry is sufficient and we do not carry out a risk assessment on site.

However, if someone owns a larger forest with more than ten hectares of land, our flat-rate products are no longer sufficient. Then we create an individual offer in which the risk must also be assessed so that we can estimate what risks we have to expect in the future. It is crucial that the forest structure is relatively healthy and that there is no high proportion of damaged spruce trees. It is also important that the fire brigade can reach the scene in the event of a fire, as the roads are often not suitable for large vehicles.

“We give our customers recommendations for their forest, because as forestry scientists, we know it inside out. They also benefit from this when it comes to settling claims, because our experience means we can still see the forest for the trees.”

What role do people play in the event of a fire?

Every year, we publish forest fire statistics with special evaluations. According to these, three percent of fires have a natural cause and 97 percent are due to human error. However, this is not always arson, but often an accident that, in combination with dryness and forest structure, leads to a fire. For example, a pure pine forest has the highest fire risk because there is a lot of dead combustible material on the ground. Once a fire has started, the decisive factor is whether the fire can spread. In a classic mixed or beech forest, the ground is also dry in summer, but the foliage burns very poorly – in most cases, only a small ground fire occurs, which then dies out because there is not enough fuel for it to spread.

What can forest owners do to prevent forest fires?

On the one hand, forest owners can put up signs and set up barbecue huts to prevent hikers from lighting a fire in the forest – because educating the public is extremely important. On the other hand, they can ensure that, if a fire does occur, it cannot spread and cause a major blaze. It depends on whether it is a pure coniferous forest, a mixed forest or a deciduous forest. A pure coniferous forest is highly combustible – especially if there are many pines, whose resin also contains combustible essential oils that fuel a fire even more. In contrast, a spruce is less problematic. In a mixed forest with different age structures, prevention is already extensive from the outset. But no matter what type of forest it is, it is always important to consider the potential deployment of the fire department. It is extremely important to talk to the fire department, show them the areas, and educate them about access routes and access to the extinguishing water. This is essential because navigation systems are of little use in the forest. For one thing, the paths are often not displayed correctly and, for another, there is no indication of whether they can be driven on by an extinguishing vehicle. In addition, I can of course also influence the forest structure – however, it can take decades for it to be optimally designed.

What mistakes have been made in the past few years in forest fire prevention and what practical tips are there?

Well, on the one hand, monocultures and the lack of involvement of the local fire brigade play a role. In addition, forest owners can take preventive action themselves, for example by creating firebreaks that are not overgrown so that a fire cannot spread further. In the past, red oak was also used more often to create barriers. Although these can also catch fire, they usually survive. Similar to robinia or bird cherry, which have few problems with forest fires. That is why they are often used in protective barriers to prevent the fire from spreading. This can keep the extent of the damage very low.

Am I, as a forest owner, actually obliged to maintain my forest?

Yes, you are. According to the Federal Forest Act, owners must reforest within a reasonable period of time. This does not necessarily mean that the forest owner has to take action after every fire, as nature itself sometimes rejuvenates the areas. This is the case when seeds from neighboring trees reach the area again and young forest plants can grow. But after a fire, all the trees in the area may have died, so that they can no longer reproduce. In that case, the forest owner has to invest and reforest or at least repair the area – this can range from partial areas to repairing the entire damaged area.

How long does it take for the forest to start producing a yield again after a fire or severe storm damage?

It takes quite a few years. In forestry terms, we talk about the so-called rotation period – this is the period from planting to the year when the tree can be felled and sold. For the tree species in Germany, this can take up to 100 years. During this time, the crop must of course be cared for. During the so-called thinning out, the most stable and best trees in an area are selected to remain standing until they die. Since the other trees are in competition, they are removed for the benefit of the remaining trees. Of course, this does not cover costs, but initially costs money. On average, it takes at least 40 years before a positive amount is achieved again.

What makes the Ecclesia product special?

What makes the Ecclesia product special is that it includes all the services we offer. It even covers the risk of snow damage. This means that it is no longer necessary to arrange all the components of the policy individually. The advantage for customers is that it saves them time, as they receive a perfect product that covers a range of aspects and risks. That is definitely a unique selling point.