After the eruption of the La Palma volcano in the Canary Islands, there are many damages that have occurred not only in homes, but also in industries, premises or cars. These damages will be covered by the Insurance Compensation Consortium, since, although we have subscribed a Car insurance or Home insurance, Insurance companies consider this type of catastrophe as an extraordinary risk. This means that the Insurance companies will not be responsible for the corresponding compensation for the damage caused by the lava from the volcano that has erupted on the island of La Palma.
Despite the fact that in these cases private insurance does not cover the damages caused, it is always convenient to have a good insurance. In addition, there are insurances that are mandatory, such is the case of mandatory automobile insurance or Home insurance in case of signing a mortgage. In any case, to contract the Insurance that suits us best, it is best to have the service of a good Insurance advisory.
Euroteide Insurance is an Insurance consultancy located in Tenerife and that, with more than 25 years of experience in the Insurance sector, will be able to guide and advise you to find the policy that best suits your needs.
Insurance compensation consortium: what type of claims does it cover?
The Insurance Compensation Consortium is a public entity - Specifically, it is a kind of private insurer that belongs to the Spanish State - that covers the damages suffered by citizens as a result of certain claims. In this way, in the event of any of these specific claims, it will be the Insurance Compensation Consortium the one who will compensate the victims.
This public body depends on the Ministry of Economic Affairs and Digital Transformation and it is financed thanks to the contributions of all the Insurances that are in force in Spain. In this way, you will be able to face the payment of the compensation to which you are entitled for certain claims.
The Insurance Compensation Consortium covers certain claims. They are as follows:
- In replacement of a private insurance policy: on certain occasions, the Insurance Compensation Consortium will cover claims that should be compensated by a private insurer. However, this only occurs when the culprit of the loss did not have contracted the compulsory insurance or when the insurance company is declared insolvent and cannot take over the compensation.
- Extraordinary floods: when floods occur due to rain, snowmelt, overflowing a river or flooding of the sea, the Insurance Compensation Consortium will cover the damages suffered by the victims.
- Volcanic eruptions, tidal waves, earthquakes and falling of sidereal bodies and aeroliths: It will also be the Insurance Compensation Consortium that will be responsible for the compensation as a result of volcanic eruptions or tsunamis, as long as these are duly certified by the National Geographic Institute and other public bodies with competence in this regard.
- Atypical cyclonic storms: This type of loss refers to cyclones, tornadoes or hurricanes with winds with extraordinary speeds. In these cases, the damages caused by these storms will also be covered by the Insurance Compensation Consortium, as long as the winds exceed 120 km / h.
- Damages caused by violent actions: damage caused by incidents of a violent nature such as terrorist attacks, rebellions, riots or popular riots. In addition, the Insurance Compensation Consortium will cover the damages caused by the actions of the State Security Forces and Bodies or the Armed Forces.
Why we must ensure adequately
There are situations that we cannot foresee. Definitely, On a daily basis, a multitude of accidents and problems can occur that cause harm to us, our loved ones or our property, or even a third person. When these events occur, our assets are put at risk, since we will have to face the expenses caused by these claims and the indemnities that correspond to third parties.
In exchange for a premium - the economic consideration that the policyholder will pay - the Insurance companies will be responsible for the expenses caused by the claims or accidents suffered by their policyholders. In Spain, the hiring of most of the Insurances is voluntary, although there are some compulsory Insurances.
Hire an Insurance Not only does it give us security in the face of an unexpected event, but it also allows us to reduce losses and risks, increasing the chances of getting ahead after suffering a loss. Without a doubt, having a contracted insurance offers us security in our day to day life and a cushion that will allow us to react to any unforeseen event or risk that we have insured. However, Insurance does not always cover all risks, so we must be attentive to the coverage included in our Insurance policy and to the insured capital. In any case, the Insurance companies will not cover in any case the damages caused by natural disasters and extraordinary risks -just like the eruption of the La Palma volcano-. In these cases, it will be the Insurance Compensation Consortium the one who will be responsible for the damages and compensation that correspond to this type of disaster.
Undoubtedly, Insurance are very useful products to be able to react to the unforeseen events with which life surprises us. Although Insurance companies do not cover all risks and accidents, the truth is that Insurance is essential products that offer us peace of mind in the face of claims and accidents that we may suffer.
However, finding the insurance that best suits us is complicated. Therefore, it is best to have the services of a good insurance advisory, such is the case of Euroteide Insurance. A savings and investment product insurance consultancy that operates in Tenerife and that will help its clients to find the insurance policy that best meets their needs, putting at their disposal its more than 25 years of experience in the sector.