If you read the fine print on your home insurance (and this is something you should already be doing), you will end up with a range of coverage exceptions, Your insurance will cover damage to your home from rain or hail, but will exclude “extraordinary perils”.
Spain’s Desertification: What Can I Do as a Consumer to Combat It?
i.e. natural disasters, such as earthquake, flood, hurricane, volcanic eruption or meteorite fall, This problem is faced by many Americans living in Florida, often ravaged by hurricanes, or Kansas, where tornadoes are common. The term used there is “act of God”.
In Spain, for example, home insurance did not cover damage caused by the eruption of the volcano on the island of La Palma, considering it an extraordinary risk.
In these cases, citizens can take recourse Insurance Compensation ConsortiumWhich will cover at least part of the damage, and state assistance when a disaster zone is declared.
Volcanoes and earthquakes aside, extraordinary risks are expected to increase in coming years, stemming from climate change and extreme weather events such as hurricanes, wildfires or floods.
For this reason, a study by an insurance comparator in the United Kingdom has sounded the alarm: Spain is the European country most at risk of home damage due to climate change.
In the report, to determine the risk, An index that takes into account the most important factors Climate-related such as changes in average temperature, climate index, number of floods due to torrential rains, hectares burned by forest fires, and air quality and pollution levels.
Spain tops the list From European countries with high risk of house damage due to weather issues. With wildfires expected to burn 298,800 hectares in 2022, it is the country second most affected by this risk, behind Portugal.
The air quality and pollution level in Spain is 47, which is lower than the UK (60) but much higher than France (33). The country with the second highest risk of damage to homes is bosnia y herzegovinaWhich is prone to more floods due to torrential rains.
the third is his own United Kingdom Which, although it suffers from very few wildfires and floods, has very poor air quality and pollution levels.
The Climate Index measures quality of life related to climate change, and Spain’s score is 94, high compared to other regions of the world, but below Portugal or Greece.
The climate crisis has become more pronounced in 2022 in southern Europe, a region that is warming at twice the world average. A new study shows that the fire season reached record “area burns” in some areas of southwestern Europe, including Spain.
A report this year from consultancy PricewaterhouseCoopers acknowledged the gap between the supply of insurers and risks related to climate change could generate premiums worth $183 billion worldwide by 2040.
Most of this amount will correspond to Home Insurance against various natural calamities such as floods, earthquakes and extreme weather events such as storms or fires.
However, the same report warns that insurance companies still have a lot of work to do to meet the demands of consumers, who still lack adequate protection, especially in Spain.
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