Insurance Coverage: Identifying the insurances that cover specific damages

Insurance coverage for varying types of damage caused by heavy rainfalls

Heavy rainfall is currently causing flooding in parts of western Germany, and many are left wondering about the insurance coverage for the resulting damage. Here's a breakdown of what you need to know about insurance coverage for flooding damage, based on different types of insurance policies.

Car Insurance (Kfz-Versicherung)

When it comes to car insurance, the coverage is typically limited to the repair or replacement cost of the vehicle. The insurance covers damages caused by flooding, including engine damage, short circuits, and damage to the car's bodywork. However, there are often specific conditions that determine which flood-related damages are covered. There may also be a self-help contribution that the policyholder must pay when reporting the damage.

Homeowners' or Contents Insurance (Wohngebäude- oder Hausratversicherung)

For homeowners and contents insurance, the coverage usually includes the costs for restoring or replacing the damaged property or household items. It covers damages to buildings or household items, such as water damage to walls, furniture, or electrical appliances. Like car insurance, there are often specific conditions that determine which damages are covered, and certain risks may be excluded. Many insurance policies also contain special clauses for natural disasters, including flooding.

Common Aspects

Both types of insurance require an investigation to confirm liability. A comprehensive documentation of the damages is essential to ensure the validity of the claims. There are often waiting periods before the insurance coverage becomes active.

It's important to note that those who report damage too late may not receive any payment. The insured individual also has a duty to mitigate the damage. The German Weather Service (DWD) has issued a warning for thunderstorms with increased heavy rain risk, and the Federation of Insured Persons (BdV) provides information on which insurance covers heavy rain damage in specific cases.

In the event of flooding, if infiltrating moisture from broken windows or damaged tiles damages furniture, household items, or clothing, the household contents insurance is responsible. Flooding that destroys parts of the inventory and building substance is typically covered by building insurance.

If you find yourself in a situation where your car or home has been damaged by flooding, it's crucial to prioritize your safety first. The BdV is a valuable source of information for specific cases of insurance coverage for heavy rain damage. Additionally, Consumer Reports found significant price differences for household contents insurance, with up to 500 percent price differences in some cases. It's important to shop around for the best insurance coverage to protect yourself from the financial impact of flooding damage.