Natural disasters: what does my home insurance cover?
Flooding, drought, landslides, water surges... With global warming, these natural phenomena are not only becoming more frequent, but also more widespread. They can cause major damage to your property and prove costly. How does Luxembourg legislate on natural disasters? What does my home insurance cover? What should I do in the event of a claim following a natural disaster? What’s the best course of action? We can help you with all the formalities.
What is a natural disaster and what does Luxembourg law say?
A natural disaster is characterised by the abnormal intensity of a natural agent, when the usual measures to be taken to prevent damage were taken to no avail or could not be taken.
Examples include floods, landslides, ground collapses, droughts and other natural events such as tremors, cyclones, earthquakes and mudslides.
Unlike our neighbours in France (Articles L. 125-1 et seq. of the Insurance Code) and Belgium (Subsection 2 of the Law of 4 April 2014 on insurance), which have specific legislation on natural disasters, Luxembourg has not, to date, legislated on this issue.
In other words, there is no legal framework in Luxembourg that requires insurance companies to provide mandatory cover in the event of a climatic event being classified as a "natural disaster".
What does my home insurance cover in the event of natural disasters?
The absence of a legal framework does not mean that damage caused by a natural disaster cannot be covered by your home insurance. Each insurance company sets its own rules and offers cover for damage caused by events such as floods, storms, fires and earthquakes. In the event of an earthquake, for example, insurers provide cover in line with the Richter scale.
o At AXA, this applies from a magnitude of 4 (including aftershocks within 72 hours).
In addition to property damage, home insurance may cover certain related costs, such as rehousing, demolition and excavation, re-landscaping of gardens, etc.
Furniture knocked over, windows destroyed, walls damaged... natural disasters can damage your home and its contents.
However, there are a few points to bear in mind:
- Only direct damage and costs are covered: if your fridge breaks down as a result of a power cut caused by flooding, for example, any food that has gone off will not be covered by the "flooding" guarantee. However, in our OptiHome product, the "fire" guarantee covers the loss of foodstuffs in the fridge/freezer following an accidental power cut lasting more than 6 consecutive hours. On the other hand, if it is destroyed by flooding, you can be compensated under this cover.
- Cover for your outdoor features and fittings: Swimming pools, garden furniture, plants... outdoor features and fittings are particularly sensitive to climatic risks. We strongly recommend that you notify your insurer to check that they are covered.
- Your garage and outbuildings are not systematically covered. With AXA home insurance, outbuildings and garages located at the same address as your home are covered. However, garages located at a different address from the home are not covered in the event of an earthquake or flooding.
As you can see, there are many nuances and differences between insurance companies when it comes to natural disaster cover. It is important to check the terms and conditions of your insurance policy to understand exactly what is covered.
Protect your home and its contents against the risks of climatic events (storms, earthquakes, flooding, sewer back-up, water run-off and landslides caused by rain) with the Sérénité Max Option in your AXA OptiHome home insurance policy.
Is it worth taking out insurance to cover natural disasters?
Many drivers believe that there’s not point insuring their car against the risk of natural disasters, as these phenomena are rare and infrequent. Nevertheless, the damage usually caused by natural disasters can be very serious, from damage to the bodywork to the total write-off of the vehicle. In this context, the amount of the damage is much higher.
For example, during a storm defined as a “natural disaster”, a tree collapses on your parked car:
- if the car can still be repaired, the insurer will pay for the repairs, as well as any towing that is necessary if the vehicle is no longer roadworthy;
- if it is no longer financially worthwhile to repair the car, the insurer will offer you a certain sum depending on your policy.
o either a reimbursement in line with the replacement value
o or its value according to an expert's opinion, i.e. an expert will calculate its value based on the condition of your vehicle, years of driving, etc.
At AXA, with OptiDrive Privilege insurance, we protect the value of your vehicle and compensate you at its purchase value for 3 years, so you can be sure of being able to buy another vehicle in the equivalent range without spending a single euro more! Our added value? After 3 years, you can consult the amount of compensation due in advance, as it is mentioned in your contract and is higher than the value assessed by an expert.
What should I do if my property has been damaged by bad weather or a storm? How will I be compensated?
Have storms, heavy rain and strong winds damaged your home and possessions?
Follow our advice:
1. To avoid further damage, switch off the electricity supply and unplug all electrical appliances that have taken on water. Has a window been broken? Pick up the shards of glass and try to fill the hole with suitable protection.
2. Take photos for your insurer.
3. Don't throw away any damaged objects, otherwise you won't be covered and compensated. Has your television set been struck by lightning? The insurance expert should be able to check this during their visit.
4. Contact your insurer, who will guide you through the various steps to be taken.
What course of action should be taken to prepare for major climatic and environmental events?
Subscribe to the Facebook page of the CGDIS - Corps grand-ducal d'incendie et de secours: if the alert is raised, they are among the first to issue a warning and official advice on the best course of action.
See all our articles with weather-related prevention advice
Severe cold snap, heatwave, storm, hail, pollution peak... What should you do in the event of this kind of alert?
Our OptiHome home insurance customers receive alerts by e-mail or text message in the event of a weather warning, to protect everything that matters to them.
