The eruption of the Cumbre Vieja volcano on the island of The Palm It has overwhelmed the whole of Spain at the disaster it is leaving in its wake. Hundreds of houses have been buried by the lava that the volcano has been spitting out for almost a week and seismological experts do not know for sure when it will stop.
a natural disaster that no one foresaw, at least no one neophyte in the matter and that is not dedicated to the study of volcanoes, which will leave the island in great need of economic resources to alleviate the significant losses it is suffering.
Especially homes, educational centers and other buildings that are no longer standing. How is all that going to be recovered? Is there aid for the victims? And, most importantly, does insurance cover this misfortune?
What the insurance says
As we well know, home insurance covers possible damages that may occur in that place, both in the property itself and in the assets that are in it. The number of things it covers depends on the policy that is contracted and the amount that is paid, but, Among them are natural disasters such as the Cumbre Vieja explosion?
Then, Unfortunately, no. Because although in the hiring all kinds of situations that may happen are contemplated, in the so-called multi-risk insurance, it is practically impossible to cover a natural disaster. And this happens because insurance covers claims connected in some way to the home.
Either because of what happens in it (fires, floods, breaks, etc.) or because it is caused by a third party (theft, vandalism …). But a natural disaster, such as an earthquake, a flood from torrential rains, a hurricane or, in this case, a volcano, is not contemplated.
Therefore, the residents of La Palma who have lost their home will not be able to claim what happened to the insurance. Although there is a hope, and it’s called the Insurance Compensation Consortium.
Is about a public figure that includes the extraordinary risk insurance regulations which insurance companies can take advantage of in cases such as Cumbre Vieja. This consortium is responsible for damages of this magnitude, even if they do not affect many people or a very large area of the territory, nor is it declared a Catastrophic Zone.
Although, if a Natural Disaster is declaredIt is the government itself that is in charge of covering the damages. In fact, the Executive has already committed to this and is preparing a specific plan to implement it, since it is already known that any endowment of public resources that is allocated to something must be legally supported.
Therefore, the residents of La Palma are going to have a way out, but, we are talking about a case that is very specific and unusual, but there are other events such as floods or hurricanes that happen more often and that insurance does not cover, so that we must take it into account if our home suffers damage.