FINANCE - INSURANCE

Natural disaster

Floods cause €125m bill for insurers



Insurers were seized of 6,500 damages to homes and businesses and 1,300 cases of flooded vehicles. (Photo: SIP/Jean-Christophe Verhaegen)

Insurers were seized of 6,500 damages to homes and businesses and 1,300 cases of flooded vehicles. (Photo: SIP/Jean-Christophe Verhaegen)

Luxembourg's insurers have estimated the total cost of compensation for the July floods at €125m, making them “the most expensive disaster in the history of Luxembourg insurance.”

Water levels reached a historic high on 14 and 15 July. In a press release, the Association of Insurance and Reinsurance Companies (ACA) announced that “the total cost of this disaster--the most expensive in the history of Luxembourg insurance--is now estimated at €125m.”

Insurers were seized in 6,500 cases of damage to homes and businesses and 1,300 files on flooded vehicles, the vast majority of which are permanently out of use.

To date, 80% of the vehicle files have been closed, with the compensation due paid in full. This rate rises to 85% for the compensation of damages to houses and businesses, total or partial, including the advances paid for the files still in progress.

The files still open are pending expert appraisals still in progress, estimates/invoices not yet provided by the insured parties, or work that is on hold due to a lack of raw materials or craftspeople not available at short notice.

In view of the rise in extreme weather events over the last three years in Luxembourg, the ACA recommended that policyholders pay attention to the guarantees they have taken out and have them reviewed by their insurer or insurance agent.

This story was first published in French on Paperjam. It has been translated and edited for Delano.