Are You Covered for Flood Damage?

After the recent flash floods that hit eastern and southern Spain, many are left wondering if their property insurance will cover the damage. Once the initial shock has subsided, property owners often face another challenge: navigating their insurance policies.

Does My Home Insurance Cover Floods?

In Spain, floods are typically classified as an “extraordinary risk,” often leading insurance companies to exclude them from standard coverage. This means that most policies may not cover flood damage, considering it an “adverse meteorological phenomenon.” However, if damage is caused by heavy rain alone, insurers usually cover it under home, vehicle, or community insurance.

It’s important to remember that insurance companies may apply specific limits to these events. For example, damage might only be covered if more than 40 liters of rain per square meter falls within a single hour, or if wind speeds exceed 90 km/h. As extreme weather events increase, insurance companies are tightening terms, so examining your policy in detail is critical to understanding the fine print on coverage limits.

What If My Insurance Doesn’t Cover the Damage?

If your insurance policy excludes flood damage, the Insurance Compensation Consortium (Consorcio de Compensación de Seguros, CCS) might still offer a solution. The CCS considers floods “extraordinary” when caused by rain, melting ice, or river overflows, as well as storm surges on the coast. But this coverage is only available if you hold a valid insurance policy; otherwise, you won’t qualify for CCS support.

The Consortium doesn’t cover every possible scenario. Hail, for example, isn’t considered “extraordinary.” Additionally, CCS compensation is capped at around €21,000 per claim, which may not fully cover extensive damage. If in doubt, report your claim both to the Consortium and your insurance provider to ensure every option is explored.

Vehicle Damage Coverage

Floods and other extraordinary events affecting vehicles are also covered by the Insurance Compensation Consortium rather than traditional insurance. To qualify, vehicles must have comprehensive coverage. Vehicles insured only for third-party liability won’t be eligible. It’s also important to note that damage from water pouring in through a broken dam or sewer burst is excluded from CCS coverage.

Steps to Make a Claim

To make a claim, document all damage thoroughly. Take photos and videos of your home and car, and save any relevant news articles to verify the cause of damage. Both private insurance companies and the Consortium have dedicated channels for claims, so follow up directly with both if you’re unsure who will cover the losses.

What If the Area is Declared a “Catastrophic Zone”?

In cases of major natural disasters, regional governments may seek to declare affected areas as “catastrophic zones,” as seen in the aftermath of the 2021 Filomena storm and the La Palma volcano eruption. If declared, affected residents may be eligible for additional assistance under the National Civil Protection System (Law 17/2015), which provides subsidies for recovery.

Navigating Insurance Claims with SGM Abogados

Flood damage can quickly become overwhelming, especially when navigating complex insurance policies. SGM Abogados offers specialised legal advice to help clients manage insurance claims, ensuring you understand every detail of your policy. With expertise in property and insurance law, SGM Abogados can assist in preparing your claim, communicating with insurance companies, and filing with the Insurance Compensation Consortium. This support can make all the difference in getting fair compensation for your damages. Don’t let the fine print stand in your way—contact SGM Abogados today to safeguard your property and receive the guidance you deserve.