Insurers expect claims of above 5m euros as a result of floods

Insurance companies expect to settle claims of above five million euros in the wake of the floods that ravaged the north of the country, judging after the claims reserves they have set up so far, but an exact figure cannot be provided as the number of files is rising by the day. The total value of damages caused so far by floods amounts to 0.6% in GDP, namely more than 500m euros, according to the authorities' estimates, but very few rural households are insured. Insurers have so far approved almost one thousand claims files for flooded or even destroyed houses, for cars and crops, and expect them to be rising in the following days. Several large insurers have set up claims reserves of above 1m euros each. The reserves point out the level of claims insurers expect to settle. The dramatic floods occurred right in the period when authorities are getting ready to introduce mandatory home insurance. An insurance policy for a home worth 50,000 euros, with goods of 10,000 euros located in Boto[ani county and built in 1980 costs between 48 and 114 euros per annum, depending on company and covered risks, according to asigur`torii.ro website.