The losses of insurance companies in Germany resulting from the damage caused by the massive floods that swept a part of the country a week ago, amounted to about five billion euros, the German Insurance Industry Association announced Wednesday. The insurance covers the residents of individual and group homes, but it varies according to the size and type of storms, and also from one region to another.
The German Insurance Industry Association said on Wednesday that the damage caused by… devastating flood That swept part of the country last week, could cost insurance companies up to five billion euros.
“We expect insured losses of between four and five billion euros,” federation president Jörg Asmussen said in a statement. He described the disaster as “one of the most destructive storms in modern history.”
The insurance covers all residents of single homes and collective dwellings against the risk of storms, but “only 46 percent are covered against other natural disasters such as heavy rain and floods,” according to the union.
There are also large disparities between regions. In the Rhineland-Palatinate, only 37 percent of the insured are covered by the risks of natural disasters, while it is 47 percent in North Rhine-Westphalia, and 94 percent in Baden-Württemberg, where this coverage was compulsory until 1993.
The last record amount in terms of compensation for insured losses dates back to August 2002, when it amounted to 4.65 billion euros after the flooding of the Elbe River in the east of the country, following extreme climatic conditions that affected the whole of Central Europe.
A new estimate of the financial losses incurred by Germany will be released next week, according to the federation.