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

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