Water Damages caused by Heavy Rains will be covered by the Consortium
Author: Susana Dias
(article published in Canarian Weekly 19th February 2010)
Monday I had a party to attend. It was the inauguration of our new Zurich Insurance Agency in Adeje, close to the new Lidl. What was going to be a happy day, suddenly changed into a nightmare due to the heavy rain. We had to set up an emergency call room to attend to all the calls from clients claiming for water damages to their houses and businesses.
“The worst they had ever experienced” said some elderly locals, talking about the torrential rain over the last few days. Closed roads, traffic came to a standstill, houses and businesses with major floods, stones, holes, cars and bins swept away, and more than 25.000 people without light and telephone. On Monday and Tuesday, the Island Territorial Emergency Plan for Tenerife was activated by the Tenerife Cabildo.
Santa Cruz has been very badly hit by the torrential rain and flooding. Approximately 160 residents are trapped in their homes. Some have been forced to leave their houses, as landslides cut off island roads. Heavy rain has flooded buildings, leaving many main roads closed to traffic. Schools across the Island were closed. The South of the Island also recorded heavy rains, the most affected areas being Guia de Isora, Los Menores, Granadilla and Las Chafiras.
In the last few days the phones in all insurance agencies have been constantly ringing. Here at Zurich Insurance, was no exception. Hundreds of people were calling for help and declaring water damages to their houses, contents, businesses and cars.
Considering how many people have been affected the Spanish Authorities declared last Wednesday that water damages caused by the flood are going to be covered by the Spanish Insurance Consortium (Consorcio de Compensación de Seguros).
What is the Spanish Insurance Consortium?
The Consortium acts in effect as a catastrophe insurer for certain types of insurance and perils in respect of Spanish risks, compensating losses and injuries arising from extraordinary events.
However, this cover will only apply if your policy is with an Insurance Company registered in Spain and cooperates with the Spanish Consortium (e.g. Zurich, Liberty, Axa, Mapfre... etc).
The Consortium is the reinsurance company belonging to the Spanish Tax Authorities and an inheritance of Franco.
In Spain, every Insurance Company must pay a percentage of the premiums to this State owned Consortium and in case of a catastrophe, like Tormenta Delta in 2005 or the heavy rains last Monday they are answerable for the damages. In the rest of Europe, Insurance companies are able to buy their reinsurance cover in the free market, but in Spain they are obliged to buy from the Consortium.
Make photos and a list of damaged contents
If you were affected by the heavy rains, do everything possible to minimize the damages, keeping in a safe place furniture and electrical equipment. Make an inventory of everything that is damaged, adding to the list the replacing value of the lost items and photos of the damaged objects. Contact your insurance agent and present him with all the photos, the inventory with details of all damaged objects, together with your passport and NIE, so that your losses can be claimed to the Spanish Consortium.
If you car suffered any water damage or has been swept away by the heavy rains, you might find it helpful to know that not only fully comprehensive policy holders are covered. If you have a Third Party Insurance with an optional cover like Windows, Theft or Fire, your car is also covered by the Consortium. This is because part of the premium reverts to the Spanish Consortium, and so, in case of a natural catastrophe you have the right to claim the damages to your car.
Your Business and Community
The same principle applies for your Business or Community. You will be covered through the Consortium if you have an insurance policy that covers any of the following risks: fire, theft; windows; machinery; electrical damages; computers or combined package of covers like Community Insurance, Hotel Insurance, Office Insurance, PYMEs Insurance, etc. The Consortium will also cover loss of benefits if this cover is contracted in the original policy and if the loss of benefit caused was directed by the catastrophe in question.
How to claim your damages
To claim your indemnization from the Spanish Consortium it’s not complicated, but non Spanish speakers will experience difficulties handling the paper work, so in this case it is best to ask for the help of a professional - your insurance agent. He or she will handle all the process at no extra cost. Here is another good reason to always contract all types of insurance through a professional insurance agency - most banks, direct phone insurers or even consultancies who are dealing with insurance neither have the knowledge or the patience to handle the claims.
If you have to do it yourself, go online to the Spanish Consortium web page: www.consorseguros.es and download the form “Extraordinary Risks” (Riesgos Extraordinarios) or visit the Santa Cruz Office located in C/ La Marina, 37, 38001 Santa Cruz De Tenerife or phone the 902 222 665 to request for more information. You should send to the Consortium the form “Extraordinary Risks”, together with a copy of your NIE and Passport, your current policy (this years policy, not an old copy), the receipt that proves that your insurance is paid and the general conditions of your policy.
Due to the high number of claims declared to the Spanish Insurance Consortium, it normally takes between two or three months until you can receive an indemnization.
People or businesses that are insured with an Insurance Company that does not work with the Consortium or have no insurance at all, will experience serious difficulties in claiming any indemnization, needless to say that it is very unlikely that they will receive any help what so ever.
Susana Dias is the Director of TVT - the Zurich Insurance Agency in Los Cristianos legally inscribed at the DGS (Direccion General de Seguros Española) with the number C0530B38657193 - more than 15 years providing excellent service.
Susana Dias is the Director of TVT - the Zurich Insurance Agency in Los Cristianos legally inscribed at the DGS (Direccion General de Seguros Española) with the number C0530B38657193 - more than 15 years providing excellent service to residents in Spain.
Contact the Author for more information or to get a personalized quote