Pärnu floods trigger surge in insurance claims

Heavy rain and flooding in Pärnu have prompted a surge of insurance claims, ERR reported, with flooded basements, garages and ground floors among the most common damage.

ERGO had received 59 claims related to the Pärnu floods by Tuesday morning, said Caterina Lepvalts, the company’s head of claims handling. Most involved home insurance, while fewer concerned vehicles.

The reported damage has been broadly similar, Lepvalts said. In addition to flooded basements, garages and ground floors, water entered some buildings through roofs. In several cases, flooding was caused by water backing up from the sewage system. Both buildings and household property have been damaged.

Lepvalts said the total amount of damage would probably increase because not everyone had yet reported their losses.

Swedbank P&C Insurance had received around 100 claims by the end of Monday, and more continued to arrive, said Eivo Kisand, head of the risk insurance department. He said it was still too early to assess the total damage because many cases were still being processed and inspections were under way. The unusually high number of cases could also make the process take longer than usual.

If Kindlustus had received 60 claims by Monday afternoon. Of these, 45 concerned home insurance, 10 comprehensive vehicle insurance and five business insurance. Lauri Nõu, the company’s head of property claims, said the final number could change significantly.

Most of the reported cases involved water damage to homes. The larger losses concerned buildings where water had remained for a longer period and affected both structures and technical systems, Nõu said. He added that the total cost would be difficult to estimate at this stage because the full impact of such events often becomes clear only over time.

Coverage depends on the insurance contract

Whether home insurance covers flood damage depends on the contract, with individual insurers applying different conditions.

Nõu said If’s home insurance includes cover for flooding and rainwater entering buildings by default in its three main packages. Flooding is defined as water suddenly and temporarily covering the ground. The cause may be heavy rain, a storm, melting snow, rising water levels or a technical accident.

However, claims may not be paid if basic safety requirements were not followed. For example, coverage may be denied if windows or doors were left open during a warning of severe weather or heavy rain, Nõu said. Illegal building solutions may also fall outside the insurance cover.

Swedbank home insurance customers are covered for losses caused by natural disasters, including storms, hail and floods, Kisand said. Customers do not need to choose separate flood cover. In the event of flood damage, they should notify the insurer as soon as possible and take reasonable steps to prevent the damage from worsening, such as pumping out water, drying rooms, photographing the damage and making a list of damaged property.