Insurance policies do not necessarily reflect the full value of the property. There are owners who insure the container, others the content or both and for amounts that can cover the total price of the property or a part depending on the monthly policy that is paid. In these cases of natural catastrophes, the Consortium exclusively pays the value of what has been contracted with the insurance company. The beneficiary of the compensation can request public aid as long as it equals the value of the lost property, which would mean the difference between what is received from the compensation and the market value of the home if one hundred percent of the property was not covered. insurance. Insurer sources warn that if the insured can prove that the house was worth more than what the insurer paid, they can choose to receive public aid without exceeding the aforementioned market value.
The insurers also define the uniqueness of a volcanic eruption, since in the event of earthquakes or floods the home is totally or partially affected but the land remains to be able to rebuild the home with insurance compensation. However, in the case of the eruption, the land is also disabled as it is invaded by lava, so the insurance amounts are insufficient to rebuild and in this case it is the public administrations that have to prepare new land so that those affected can build.
The insurance consortium has already paid 3.7 million euros to 17 properties and one establishment
The CCS reported yesterday that it has already paid about 3.7 million euros to policyholders affected by the volcanic eruption on La Palma. The payments correspond to 17 houses and a commercial establishment that have been destroyed by lava. So far, the Consortium has received 510 requests for compensation, that belong to 382 homes, 92 motor vehicles, 34 shops and two industries. It is still too early to know exactly how many claims for compensation there will be because the Consortium has not set a deadline to request them given the circumstances of the catastrophe and if the homes that have not claimed insurance did not have the property insured, although there is evidence that there are cases of property losses that were not covered. In this case, the only option for the victims to be compensated for the property they have lost is through public aid.
The battery of measures put on the table by the different administrations suppose aid for different concepts such as housing, equipment, training, benefits or employment. All aid and subsidies are complementary and the decree approved by the Council of Ministers last Tuesday refers to Royal Decree 307/2005 that regulates subsidies derived from emergency or catastrophic situations and establishes the procedure for their granting. This text establishes that when the totality of the damage produced cannot be covered, public aid is complementary and will be compatible with other types of subsidies, compensation, aid, income or resources from public or private systems. The limit is the same, that is, that the sum of all of them does not exceed the value of the damage produced.
The casuistry that exists in the areas affected by the eruption is varied but those owners of homes that are second homes and were not insured will have more problems, indicate sources of the Executive, who will be entitled to state aid for loss of property but as it was not their main and sole home there will be more difficulties in offering them an alternative of accommodation. Those who were insured will recover a good part or all of the damage produced between compensation and public aid, while families who have lost their only home will be offered a temporary home. The main problem arising from the eruption will be in the irrecoverable soil and how the future relocation of those affected is solved.
Insurers are updated
Advice. Accurate information
The Insurance Compensation Consortium asks the insurers and mediators operating in La Palma to be attentive to the aid approval agreements, in order to be in a position to correctly advise the insured on the distinction between public aid and compensation from the consortium on how to apply for one and the other.
New portal. Natural hazards
Faced with the situation generated in La Palma, the employers’ association of the Unespa insurance companies has launched a portal called www.naturalmenteproteinados.es in order to inform about everything related to the procedures and conditions of insurance in the event of natural calamities. The information has been updated with the inclusion of a volcanic eruption like the one on La Palma.