2023-07-17 03:18:05
17 July 2023 at 05:18
Two years ago, water flowed through the streets of South Limburg. At that time, not everyone was comprehensively insured once morest flooding. More households and entrepreneurs now have coverage, but not everyone yet.
Since the flood in South Limburg in 2021, the largest in 25 years, the Netherlands has started to insure itself better once morest damage caused by water.
This was possible because insurers have expanded the cover for this. But we also opt more often for coverage that compensates damage in the event of flooding. “Limburg taught us that we might do better,” says Geeke Feiter, director of the Dutch Association of Insurers.
In July 2021, most households were lucky. In the two years before the flood in Limburg, several large insurers had added flood cover for smaller rivers and streams to their home insurance policies.
Because it not only rained for a long time and a lot in Limburg, but the brooks De Geul and De Gulp also overflowed. Thousands of people had to leave their homes and suffered extensive damage. Nationally, 95 percent of households were not only insured once morest rain damage, but also once morest flooding of streams, according to an analysis by the Dutch Association of Insurers.
Dike breach in small river was not covered for everyone
The flooding of a small river had caused more problems. Feiter: “If the Juliana Canal in Limburg or a dike at Wilnis had broken, less than half of the Dutch had insurance cover for it.” The Juliana Canal just failed to flood in July 2021. However, a leak in the dike near the canal was closed.
More than 90 percent of consumers are now covered for flood damage from streams and smaller rivers. Feiter: “Limburg has opened the eyes of people and insurers and created more awareness. We have also ensured, for example, that insurance product cards show at a glance whether you are covered in the event of flooding.”
Entrepreneurs in trouble because of cheap policies
Entrepreneurs were less often insured for floods in 2021. Insurers did not offer the cover or entrepreneurs opted for cheaper options. About half of them were covered once morest a stream overflow and less than 15 percent once morest a small river overflow. A few large insurers showed leniency, but not every entrepreneur received compensation for the damage.
“Entrepreneurs in the region sometimes chose not to insure flooding,” says insurance advisor Ger Wiertz from Valkenburg aan de Geul, where most of the water damage occurred.
“Then a catering entrepreneur asked for a quote through me and I might arrange insurance for building and inventory for 5,000 euros a year with the well-known insurers. But the entrepreneur then saw that he might do it through a so-called exchange policy (often from a foreign insurer, ed.). might arrange for 3,000 euros, but without flood cover.”
Entrepreneurs are also insured more often
About three quarters of entrepreneurs now have cover for flooding of streams and smaller rivers, according to figures from the Dutch Association of Insurers. This is partly because insurers that were lenient to entrepreneurs in 2021 now also offer cover.
Wiertz thinks that everyone might have taken out good insurance back then. But according to him there is now more awareness, especially in his region. “However, there will still be entrepreneurs who do not take out flood cover. That is their own choice. As long as you know what you are choosing.”
So the numbers are already better. Nevertheless, Feiter points out that almost 10 percent of consumers and a quarter of entrepreneurs are not insured once morest flooding. “It’s possible that not everyone lives near water.”
Feiter says that the Dutch Association of Insurers, as a trade association, cannot follow suit. “That’s for financial advisors. But we do try to raise awareness of the risks of climate damage.”
Dyke breach at large river not yet covered
The flood in Limburg also showed that large rivers sometimes have difficulty in discharging a lot of rainwater at once. A flood of the Meuse then came close. And flooding of major rivers or the sea is not covered by your insurance.
Insurers have always considered that uninsurable. The damage would be too great to bear. Wiertz wonders how many people hope for insurance coverage. “If you live along the Maas, you would like to insure yourself for this. But elsewhere in the country you may not.”
From disaster fund to flood insurance
At the moment you have to turn to the government’s disaster fund in case of damage. In addition, it is uncertain what you will get.
Insurers tried to maintain the momentum of the 2021 flood in order to put flood coverage in insurance for everyone. Feiter: “We focus on one counter. In South Limburg it turned out to be confusing how far your insurance extended and when the disaster fund provided cover.”
Over the past two years, insurers have held a lot of consultations in The Hague. “We have a scenario ready, but many steps are needed to regulate this in law. As a result, insurance for flooding of major rivers will not end up in insurance in 2024.”
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