Natural hazard insurance protects against floods - financial expert tips

Natural hazard insurance protects against floods - financial expert tips

How www.morgenpost.de reported, persistent rain, dew and storms in December led to flooding in many regions of Germany, causing significant damage to residential buildings. Natural hazard insurance offers protection against the financial consequences of floods, snow pressure, avalanches, volcanic eruptions, earthquakes, subsidence and landslides.

It is important to emphasize that standard home contents and homeowners insurance is not sufficient to cover damage caused by flooding. Natural hazard insurance must be taken out as an additional policy to ensure comprehensive protection.

Insured parties affected by flood damage should inform their insurer immediately and document the damage, ideally in the form of photos and videos. You also have a duty to take emergency measures to prevent further damage and should document this.

However, it should be noted that many insurance policies provide for a deductible, which is usually around ten percent of the damage. It should also be noted that no benefits will be provided in the event of damage caused by backflow from the sewer system if there is no functional backflow valve on the house.

These recent floods in Germany are expected to lead to an increase in natural hazard insurance purchases. However, the insurance industry will also face increased claims, which could impact premiums for this type of insurance. Insureds should be aware that mitigation compliance and proper documentation are critical to ensuring financial protection in the event of flood damage.