Financial expert explains: Why most insurance companies don't cover storm damage - and how those affected can still get help.

Financial expert explains: Why most insurance companies don't cover storm damage - and how those affected can still get help.

According to a report from www.ndr.de,

The storm surge on the Baltic Sea coast has caused considerable damage, with many homeowners now faced with the question of which insurance will cover the damage. According to the consumer advice center, household contents and residential building insurance are not sufficient for storm surge damage; additional storm surge insurance is required. Unfortunately, only two percent of those potentially affected have taken out such insurance. People who are not insured will rely on support from the state and could perhaps hope for the hardship fund.

Repair costs in the affected areas could increase due to the high demand for construction and renovation services, and there could be bottlenecks in shipyard appointments. Prime Minister Daniel Günther has announced that he will support nationwide natural hazard insurance that also covers storm surges. But until such measures are implemented, financial help from the state remains the only salvation for many of those affected.

The impact on the market could be new requirements for insurance companies and construction companies as well as increased interest in natural hazard and storm surge insurance. The insurance industry may need to rethink its policies and offerings to respond to increasing demand for more comprehensive coverage. On the other hand, construction companies in affected areas could benefit from an increase in orders, while waiting times for repairs could increase.

Overall, the storm surge on the Baltic Sea coast shows the urgency of comprehensive and appropriate insurance coverage for natural disasters as well as the need for increased government support and preparation for future events of this type.