Climate Change and Insurance: Impact on Claims
Climate change has a growing impact on insurers. Floods, storms and drought cause a huge increase in damage claims. This article explores how these claims affect premiums and what you can do to be prepared.
Climate change is one of the biggest challenges facing the insurance industry. According to reports from the KNMI and the Dutch Association of Insurers, damage caused by extreme weather has increased by 60% over the past ten years. Floods and storm damage in particular have major consequences. The year 2023 saw a record number of storms in the Netherlands, leading to more than €1 billion in damage claims.
In addition, we see that drought is also becoming a growing problem. Cracks in foundations due to drying soil lead to high repair costs for homeowners, which in turn results in more damage claims. This has led to calls from the sector to make governments and citizens more aware of climate risks.
Insurers are increasing their premiums to offset these costs. Some regions, especially areas vulnerable to flooding, also have higher deductibles. In addition, some insurers offer specific climate policies that help customers repair natural damage.
- Check your current insurance: Make sure that natural damage is explicitly covered in your building and contents insurance.
- Take preventive measures: Consider water-resistant floors, sandbags and rain drainage systems to limit damage.
- Inquire about subsidies: Many municipalities offer subsidies for adapting your home against climate damage.
- Consider alternatives: Insurers also recommend sustainable solutions such as green roofing or rain collection systems.
The consequences of climate change are inevitable, but you can prepare for them. By properly arranging your insurance and taking preventive measures, you protect yourself against unexpected costs.
