Flood damage: Which insurance pays and how can those affected take precautions? Tips from financial experts.

Flood damage: Which insurance pays and how can those affected take precautions? Tips from financial experts.

According to a report from www.butenunbinnen.de,

After the floods in Bremen and the region, the question arises as to which insurance will cover the damage caused. According to Annabel Oelmann, head of the Bremen consumer advice center, natural hazard insurance is necessary in the event of damage to the house or household contents. This insurance must be taken out as additional insurance to the building and/or household contents insurance. However, not every house can be insured; insurance companies may refuse to accept it, especially in risky areas. The cost of insurance depends on the risk to the house and is not cheap. Prices rose by up to 30 percent at the beginning of the year.

The impact on the market and consumers is clear. Insurance companies could issue more denials, which could lead to greater exposure and uncertainty for homeowners. The rising prices for natural hazard insurance could mean that fewer people can afford this insurance. If the insurance broker Janine Desch imagines costs of 800 to 900 euros per year to insure against natural damage, this will represent a financial burden for many people. The recommendation to compare different providers could encourage more people to consider alternative insurance options. This would represent a shift in the insurance industry as providers would have to adapt due to increased demand for cost-effective alternatives.

The requirements for insurance are increased by the recommendations of the Bremen Consumer Center. The ability to insure your home is becoming more limited with increasing rejections in risk areas and higher insurance prices. This could lead to increased uncertainty and vulnerability for homeowners, particularly in regions that have already been affected by flooding.

The requirement to compare multiple providers and the possibility of already having insurance could lead to consumers reviewing their existing insurance and switching to get better conditions. This would impact the insurance industry as they would face increased competition and the need to make more attractive offers.

In summary, it can be said that the recommendations of the Bremen Consumer Center and the increasing costs for natural hazard insurance can have a significant impact on the market, the consumer and the industry. The increasing uncertainty and risk for homeowners as well as the adaptation of the insurance industry to the increased requirements could lead to a fundamental change in this area.