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Insurance rejects compensation after major fire in Volkshaus Weißwasser
According to a report by MDR SACHSEN, the city of Weißwasser was not compensated by insurance after the major fire in the Volkshaus. The Görlitz regional court ruled that the insurance company could invoke a clause in the additional agreements to the insurance contract, according to which buildings that were ready for demolition or were otherwise permanently devalued were not insurable. The insurance company considers the Volkshaus to be ready for demolition and the court followed this opinion. From an economic perspective, this decision by the Görlitz Regional Court has an impact on various players. On the one hand, the judgment means a loss for the city of Weißwasser, as it will not receive the hoped-for insurance sum of 1.6 million euros. This money would have been for...
Insurance rejects compensation after major fire in Volkshaus Weißwasser
According to a report by MDR SACHSEN, the city of Weißwasser was not compensated by insurance after the major fire in the Volkshaus. The Görlitz regional court ruled that the insurance company could invoke a clause in the additional agreements to the insurance contract, according to which buildings that were ready for demolition or were otherwise permanently devalued were not insurable. The insurance company considers the Volkshaus to be ready for demolition and the court followed this opinion.
From an economic perspective, this decision by the Görlitz Regional Court has an impact on various players. On the one hand, the judgment means a loss for the city of Weißwasser, as it will not receive the hoped-for insurance sum of 1.6 million euros. This money could have been used for reconstruction or other investments. The city is now considering going to the next court to challenge the ruling.
For the insurance industry, the ruling could mean that in the future they will have to carry out a detailed risk assessment of vacant monuments or buildings that are ready for demolition. In this case, the OKV applied its clause and had it confirmed. Other insurance companies could follow suit and introduce similar clauses or insurance rules for such situations.
Future investors or owners of demolished buildings must also be aware that they may receive no or only limited coverage from insurance companies. This can make such structures less attractive for investment or increase the costs of additional security measures.
It remains to be seen how this specific case will affect the insurance market and the willingness to invest in such buildings. There could be more precise risk assessment and stricter insurance conditions. In addition, vacant monuments or buildings that are ready for demolition could have less value and be more difficult or expensive to sell.
Source: According to a report by MDR SACHSEN, www.mdr.de
Read the source article at www.mdr.de