Flood damage: Insurers expect costs in the billions

The tests have not yet been completed, but it is already becoming apparent that the floods have caused insurance losses of up to five billion euros – in North Rhine-Westphalia and Rhineland-Palatinate alone.

The insurance losses after the flood disaster in North Rhine-Westphalia and Rhineland-Palatinate run into the billions. “We are currently reckoning with insured damage of four to five billion euros,” said the general manager of the German Insurance Association (GDV), Jörg Asmussen.

Bavaria and Saxony not yet included

These are the first preliminary estimates and they only affect the states of North Rhine-Westphalia and Rhineland-Palatinate. Damage in Saxony and Bavaria is therefore not yet included in the estimates.

This is the worst year for insurance companies since 2002. “The damage is likely to be even higher than that of the August flood in 2002 of 4.65 billion euros,” said Asmussen. The flood disaster is thus “one of the most devastating storms in the recent past”.

Damage is still being examined

Because communication and infrastructure are currently not working properly in many affected areas, the insurers are still checking the amount of damage. The association plans to publish an updated estimate in the coming week.

Almost all residential buildings nationwide are currently protected against storms and hail, as the GDV explained. However, only 46 percent of homeowners have protection against other natural hazards such as heavy rain and floods. Asmussen therefore advised reviewing and adapting the insurance cover.