Infotech

Insurers estimate the cost of floods in the Alpes-Maritimes at 210 million euros



Posted on Oct 20, 2020 at 6:55 PMUpdated Oct 20, 2020, 7:37 PM

The floods that devastated the Nice hinterland at the beginning of October caused some 210 million euros in damage to insured property, the French Insurance Federation (FFA) and the reinsurer said on Tuesday. government, the Caisse centrale de réassurance (CCR). A significant amount for the French system of compensation for natural disasters and sharing of the costs of these events between private insurers and the CCR.

“These estimates could be revised in the coming days, when all the affected areas have been made accessible and all claims have been made”, take care to underline the FFA and the CCR whereas the exceptional rains and the floods which occurred in the wake of the storm Alex in the Alpes-Maritimes devastated crucial infrastructures such as roads and bridges.

Longer reporting deadlines

For the time being, the profession has been able to identify a little more than 8,000 claims. However, it has extended the legal deadline for declaring claims until November 15 to give victims time to declare the extent of the damage. Once this period has expired, insurers expect to record around 14,000 claims. The bulk of the bill should come from damage to homes (72%). Damage to professional and agricultural property should represent 25% of costs, the rest being linked to automobile claims.

“There are not a lot of claims in number but they are significant in average amount”, notes Stéphane Pénet, Deputy General Delegate at the FFA. By way of comparison, in recent years, natural disasters, excluding drought, covered by the CatNat regime (for “natural disasters”) have cost 650 million euros per year on average.

The bad weather in the Alpes-Maritimes, which killed at least five people, therefore comes at a significant cost. Especially since the expected invoice of 210 million euros should be added some 78 million euros of damage caused in Brittany and on the Atlantic coast by the same storm Alex. In these areas, professionals have counted a little less than 40,000 claims, according to the FFA and the CCR.

A very important bill for the public

The floods in the Alpes-Maritimes should also cost the public sector dearly, as they have devastated many uninsured infrastructures, such as roads or bridges. The state is indeed its own insurer. “Generally, in a flood, there is 20 to 25% of the damage that is on uninsured infrastructure. There, it will be much more important ”, emphasizes Stéphane Pénet. Faced with the extent of the damage, the President of the Republic, Emmanuel Macron, has also announced the creation of a special fund in which the State should invest “for sure several hundred million euros”.

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