Flood insurance: What damage is covered and why it is important

Flood insurance: What damage is covered and why it is important

According to a report by www.merkur.de,

The recently increased flood situations in Germany have severely affected many households - especially in the regions of Bremen, Lower Saxony, North Rhine-Westphalia and Saxony. Given the increasing number of floods, many people are wondering whether their insurance will compensate for the damage caused.

Many damages to houses caused by natural forces are covered by homeowners insurance. However, damage caused by flooding is generally not covered. These are called natural hazards and require an additional option that must be completed separately. According to the consumer advice center, only 46 percent of private homes in Germany are insured against this damage.

The analysis shows that the decision as to whether additional natural hazard insurance can be taken out is made by your own insurance company. This decides based on the course of damage over the last few years and decades. In addition, policyholders are subject to certain obligations when taking out natural hazard insurance, the failure to fulfill which can result in the natural hazard protection not being effective despite the insurance being taken out.

Given the current flood situation and the increasing frequency of such natural events, it makes sense to review insurance policies and, if necessary, consider additional natural disaster options. This can help households in affected regions better protect themselves against the consequences of flooding.