Here in Florida, we tend to think that we have the exclusive right to complain about Flood Insurance and the rising premiums that go with it.  Unfortunately, flood insurance and ever increasing premiums are a problem not only in other states, but in other countries as well.

For example, a recent article in the Tampa Tribune pointed out that payouts for flood insurance claims from a single event in Germany would soon top 4 billion dollars (not a misprint – that is billion with a “b”!)  Over the past week, heavy rains in Germany, the Czech Republic, Austria, Slovakia and Hungary have cause extensive overflows of the Elbe, Danube and other rivers throughout the area.  Insurance costs in Germany alone are estimated to run over 3 billion dollars. 

But those shocking facts are not even the real story.  The real story is that the total damage caused by this flood is estimated to be over 16 billion dollars!   Why the huge difference between the estimated insurance claim payouts and the total estimated damage?  The problem is that many residents have been unable to obtain insurance coverage for this hazard due to insurance companies refusing to issue such policies in the area.  Even those who might actually be able to obtain such coverage, were not able to purchase same due to the prohibitively high cost demanded by the insurance carriers! 

Unfortunately, the net result of this situation is that there are a lot of people out there with damaged or destroyed property (to the tune of 12 billion dollars!) and there will be no insurance or other funds available to assist them with the repair of their property or replacement of their personal items.  Although it may be impossible to see into the future, you can always prepare for the future.  Therefore, check your insurance policies today to make sure you have the appropriate amount and type of insurance.  Although your flood insurance premiums may seem high, the cost of such insurance pales in comparison to the cost of replacing your property and personal items.