BESIDES the cost in human lives and the massive disruption caused, this week’s DANA in Valencia province will be the most expensive natural disaster in Spanish history.
Insurance companies are gearing up to face the largest number of claims ever for an incident while countless businesses, many of which are run on a self-employed basis- will have to get back on their feet.
The National and Valencian governments are already planning payments to affected residents including a €250 million package that will see initial payouts of €6,000 per household to replace fixtures and fittings.
READ MORE:
In regard to insurance, the Compensation Consortium – a public body that is part of the Economy Ministry says it is far soon to make a financial estimate of the damage caused to building.
The last major DANA to hit the Valencian Community was in September 2019, with a big impact on the south of Alicante province.
The cost to the Consortium was €737 million.
Meanwhile the big storms of 1983 that affected the Basque Country, Navarre, and Cantabria led to payouts totalling €821 million.
The insurance employers’ association said on Thursday that 77.4% of homes in Valencia province are insured.
Policies have to be kept up to date with payments and the association has a question and document about the coverage that policy holders have in the case of a DANA.
All vehicles that are insured are covered by compulsory third-party car insurance.
Amounts to be paid cannot exceed the value of the destroyed property or the limit stipulated in the contract, that is, the insured capital.
