Flood insurance enters limelight in Germany
Over the past week, Germany has fallen victim to a catastrophic flood that has caused a significant amount of damage in some parts of the country. The flood began at the Danube River, which is the second largest river in Europe, and several other rivers quickly began to overflow. Combined, these rivers contributed to one of the worst flood disasters in Germany’s history and have put a great deal of strain on the flood insurance sector within the country.
German floods expected to have caused $4 billion in damage
According to Fitch Ratings, the floods in Germany have, thus far, caused approximately $4 billion in damage. The firm had initially estimated damages to exceed the $12 billion mark, but the floods have proven less disastrous than the firm had anticipated. Many of the homeowners in Germany have flood insurance protection, but the severity of the disaster could put some delays on how quickly claims payments are issued.
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Government officials to address issues brought to light by floods
German officials plan to address the issues concerning the flood disaster and flood insurance this week. Waters have begun to recede in the areas affected by the disaster, which means that recovery efforts can soon be underway. Government officials are expected to show some attention to the apparent failure of new flood barriers that had been erected in some of the affected regions. These barriers were meant to hold flood waters at bay, but some were not up to the task. Those barriers that did succeed in their task did so very well, however.
Disaster may affect price of flood insurance coverage
Exactly what impact this disaster will have on flood insurance in Germany is not yet certain. The severity of the disaster is likely to have an effect on the cost of flood insurance, especially as insurers work to recoup any losses they experience through the disaster. If flood insurance policies themselves do not grow more costly, homeowners insurance coverage may in the near future.