Water damage caused by storm surges, floods and heavy rain: financial expert explains insurance coverage.

The article points out that water damage caused by storm surges, floods or heavy rain is usually covered by partial insurance. Partial comprehensive insurance is already included in fully comprehensive insurance.

Own fact-based information:

Water damage to vehicles is a common problem, especially in regions with a high risk of storm surges, floods or heavy rain. These natural events can cause significant damage to vehicles and lead to high repair costs. It is therefore important to take out appropriate insurance in order to be financially secure.

Comprehensive insurance usually covers damage to the vehicle caused by external influences such as natural disasters, theft, fire or broken glass. For example, it covers repair costs for water damage or loss of value of the vehicle due to flooding.

Fully comprehensive insurance not only includes the protection of partial comprehensive insurance, but also damage caused to your own vehicle by accidents you cause yourself. It therefore offers comprehensive protection that covers all possible cases of damage.

The impact of water damage can be significant for the market and consumers. Insurance companies may experience increased claims reporting and processing, which can lead to higher costs. In return, insurance premiums could rise to cover the higher risks.

Analysis and calculation of impacts:

The increasing number of water damages due to storm surges, floods and heavy rain can lead to increased demand for partial and fully comprehensive insurance. As a result, insurance companies could record higher revenues, but could also be burdened by increased claims reports.

Assuming that the number of claims due to water damage increases by 10% and the costs for repairs amount to an average of 500 euros, insurance companies would increasingly be burdened with additional costs of 50 euros per claim. If 1000 claims occur per year, this would result in additional costs of 50,000 euros per year.

To cover these costs, insurance premiums could be increased by a certain percentage. If we assume that premiums increase by an average of 5%, consumers would have to pay an additional 25 euros per year with an average insurance premium of 500 euros per year.

Source:

According to a report by www.rnz.de