Storm damage – a case for insurance

Presse release 4 January 2012

"Ulli" is the latest storm to hit north and west Germany, with fire rescue teams being kept busy through Tuesday night as toppled trees blocked roads and railway lines in many areas, tiles tumbled from roofs, parts of house fronts fell off and forests had to be closed off. Another heavy storm "Andrea" is expected on Thursday. Gale-force winds and heavy rain can cause extensive damage to buildings, goods and vehicles. Which insurance covers the damage?

Over 70% of all storm damage concerns residential buildings insurance. Damage includes roof tiles that have been blown off and damage to chimneys, satellite TV dishes or awnings. "Residential buildings insurance covers storm damage to your home. A storm is classed as winds of at least eight on the wind scale, i.e. wind speeds of over 63 km/h. The important thing is that the word 'storm' is included explicitly in the policy", explained Christian Diedrich, Chairman of the Board of Management of property-casualty insurer ERGO Versicherung.

Home contents insurance replaces damage to furniture and furnishings
If a tree damages the roof during a storm and the subsequent rain causes damage to furniture and furnishings, home contents insurance covers the costs of replacing those items - and at replacement value. Costs for damage to awnings and satellite TV dishes are also covered.

Damaged car - own damage motor insurance covers repair costs
Falling roof tiles, branches or hailstones can cause damage to parked vehicles. The ensuing costs are covered by the car owner's comprehensive own damage motor insurance. The policyholder only has to pay the excess amount agreed in the partially comprehensive motor insurance. Partially comprehensive motor insurance is included in fully comprehensive motor insurance - and the driver's no-claims bonus is not affected in the event of storm damage.

Damage to neighbour's property: a case for liability insurance
If a tile from your roof damages your neighbour's property or other vehicles, or if it injures someone, this may be a case for liability insurance. In the case of owner-occupied detached houses, private liability insurance may help. In the case of flats or multiple dwellings, landlord's or homeowner's liability insurance is the type of insurance required.

Flooded cellar - covered only with "other damage related to natural hazards"
Storms often involve exceptionally heavy rainfall, and flooded cellars may be the result. "In such cases, the home contents or residential buildings insurance only applies if the risk 'other damage related to natural hazards' is included", said Christian Diedrich. Otherwise, both types of insurance only usually cover flooding from water mains following a burst pipe.

The "other damage related to natural hazards" clause is of key importance for the cover of privately owned property. What many people don't know is that heavy rain causes around 50% of all flood damage. This means that buildings situated far away from rivers or lakes are also at risk. Other 'damage related to natural hazards' covers earthquakes, landslides and snow damage.

What to do if making a claim
In general, you must keep the damage to a minimum. If your roof is damaged, it must be provisionally sealed against rain. The same goes for damaged windows or car windscreens. In addition, the damage must be reported to your local insurance expert without delay.

The following information is useful when reporting damage:

• Policy number, if to hand
• What has been damaged, and to what extent?
• Give initial estimation of cost of damage
• Take photos of damage to show the extent of damage
• Give a phone number for any queries

Free SMS storm warning
Prevention is better than cure: this is why ERGO has teamed up with the German Meteorological Service to offer a free SMS storm warning service. Subscribers to the service will receive a text message before heavy rain and severe storms, gale-force winds, extreme snowfall and black ice. This means that they will have time to make the necessary preparations in good time in order to prevent damage - by parking their car in the garage, for instance, closing windows and blinds or packing away garden furniture. If you are living in Germany and are interested in this service, you can register for free on the ERGO website:  (German)

For further information, please contact:

About the ERGO Insurance Group 
With premium income of € 20 billion, ERGO is one of the major insurance groups in Germany and Europe. Worldwide, ERGO is represented in more than 30 countries and concentrates on Europe and Asia. ERGO is one of the market leaders in all segments in its home market of Germany. More than 50,000 people work for the Group, either as salaried employees or full-time self-employed insurance agents.
ERGO offers a broad range in insurance, provision and services. More than 40 million customers, of which 20 million are based in Germany alone, place their trust in the expertise, security and support provided by ERGO and its experts in the various fields of business.
ERGO is part of Munich Re, one of the world's leading reinsurers and risk carriers. 

Disclaimer
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Insurance Group. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.