The claims for flood damage in Germany may reach $8 billion or €6 billion the catastrophe modeling firm AIR Worldwide said. Germany suffered the worst flooding in a decade due to heavy heavy rainfall in late May and early June that drenched Germany, Austria and the Czech Republic. Other countries affected are Switzerland, Hungary, Slovakia and Poland.
"Floodwaters hit Germany hardest," director of Air Worldwide in Germany Yorn Tatge said. "While the worst damage has already occurred, this flood event is ongoing." They also noted that the overall, non-insured damage to the economy would be much higher.
Germany on Wednesday agreed the financing of an 8-billion-euro fund to help repair damage, with both the federal government and states footing the bill.
Catastrophe modeling firms use computers to cross-reference data on insured values with geographical, construction and meteorological information.
This is the reason why flood insurance is really important. In the US, only 20% of American homes at risk for floods are covered by flood insurance. Most private insurers do not insure against the peril of flood due to the prevalence of adverse selection, which is the purchase of insurance by persons most affected by the specific peril of flood.
In traditional insurance, insurers use the economic law of large numbers to charge a relatively small fee to large numbers of people in order to pay the claims of the small numbers of claimants who have suffered a loss. Unfortunately, in flood insurance, the numbers of claimants is larger than the available number of persons interested in protecting their property from the peril, which means that most private insurers view the probability of generating a profit from providing flood insurance as being remote.
In certain flood-prone areas, the federal government requires flood insurance to secure mortgage loans backed by federal agencies such as the FHA and VA.
If you live in low lying areas, make sure that your home insurance have Flood Insurance Policy. Flood damage can happen to anyone.
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ReplyDeleteDo you think government should be liable to pay flood victims?
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William Martin
PPI Claims Made Simple
When you buy your insurance policy through a broker, they’ll often help you claim. They might offer advice and support, or work with your insurance company and get almost everything done for you.Either way, it’s well worth giving them a call before you talk to your insurance company.
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We had some pretty bad flooding in New Jersey during the recent hurricanes. not only was my basement flooded, but so was the first floor of my house. It's a good thing I had the sense to move everything to the second floor before leaving. Unfortunately, this also means I sustained a ton of flood damage, luckily the insurance company helped me find a great fire and water damage restoration company that made my house livable again in no time.
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ReplyDeleteNice blog. Thanks for sharing such a great news that will help to people in some bad situations. Thanks for sharing it...