Dutch insurers have so far received almost 13,000 claims as a result of the floods in Limburg last month. Most claims come from Valkenburg aan de Geul. Although the number of reports has increased, the Dutch Association of Insurers does not expect any problems with the settlement and payment of claims.
“We see that our members are doing well and that non-covered business flood damage is reimbursed by insurers out of generosity. We know so far from a handful of entrepreneurs that they have taken out a stock exchange policy that excludes flood damage,” says the Association of Insurers.
A scholarship policy is not a typical insurance policy. According to the Association, such a policy is often taken out by companies that run high risks, such as recycling companies. earlier wrote the Volkskrant that entrepreneurs with a stock exchange policy do not receive compensation for water damage.
Deviating from the policy
Entrepreneurs had earlier there is still uncertainty about the difference between compensation for precipitation and flooding. For example, precipitation damage is often insured, while flood damage is not. But due to the extreme situation in Limburg, insurers are more flexible with the policy conditions and they now also reimburse flood damage, says the Association.
“Of course, it is only in this situation that the policies of entrepreneurs are handled more flexibly. Insurers have seen the major water disaster and want to assist entrepreneurs properly,” says the Association.
government fund
For the time being, the insurers pay the compensation for flood damage, which is not covered in the policy, themselves. They hope to get that advance from the government back. Because the flooding in Limburg has been formally declared a disaster, the Compensation for Damage Act has come into effect. The government is then a kind of safety net for damage that is ‘not reasonably’ insurable.
But it remains to be seen whether the insurers will get that advance back from the government fund. They may also get nothing in return, according to the Covenant. Currently, the National Office for Entrepreneurs (RVO) and the Ministry of Justice and Security are still working on the details of the government fund, from which flood damage may also be compensated.
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