The water may be gone, but so are the tourists. That is problematic, according to Tibert Lagarde of MKB Limburg. “We are in the middle of the tourist season. The insurers are handling the material damage reasonably well, but we are also seriously concerned about the loss of turnover.”
The organization fears bankruptcy. Laheij of Hotel Walram thinks that if he doesn’t get extra support, it might mean the end of his hotel.
The flood has been formally declared a disaster, with the government paying for damage that is “not reasonably” insurable. In principle, this does not include loss of turnover. It may take some time before the first compensation is paid.
The Ministry of Justice and Security says that it is not yet clear about the extent of the damage. That will take longer than planned, there will not be an overview before the first Council of Ministers on 13 August. Little can therefore be said about the size of the allowances; the cabinet has promised to compensate damage “amply”.
So the victims are still in uncertainty for a while. Entrepreneurs can make use of the corona support packages if they are dealing with loss of turnover due to the floods, the government has already said. But they also only cover fixed costs and wage costs, not the lost profit from the high season.
Precipitation damage yes, flood damage not
What leads to more uncertainty is that precipitation damage is often insured, but flood damage is not. The difference is not always obvious. Paul Corten, counter-expert in damage, sees that in Valkenburg precipitation damage is reported as the cause for one house, but that flood damage would be the cause for an entrepreneur in the same street. “It’s the same cause, because they’re on the same street, but one is covered and the other is not.”
The municipality of Valkenburg announces that these types of cases are known, but the Association of Insurers says it has not (yet) received such reports. If there are problems, the insurers want to solve them, according to the Association.
Also problems for homeowners
Private individuals are generally better insured than entrepreneurs. The insurance policies of entrepreneurs are often more complex and entrepreneurs also more often choose not to insure everything in order to be cheaper. This can cause damage, especially for entrepreneurs.
But the Home Owners Association also says that members are faced with a lot of uncertainty. Not all insurance companies cover all types of water damage. The association wants clarity for victims as soon as possible, which is why insurers should be the direct point of contact for handling damage. They would then have to settle the bill with the government.
The Dutch Association of Insurers says it is in close consultation with the ministry to help victims, but “will be happy to discuss with the government whether, and if so, how this can be done even better in the future”.
The Association of Insurers called four years ago that there should be compulsory collective insurance for damage caused by flooding. The Home Owners Association was against it at the time and, when asked, said it now sees even more in a government emergency fund.
Previously, the entrepreneurs recorded the damage:
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