Adapting to the threats posed by climate change to the households of Latvian residents, the insurance joint-stock company BTA Baltic Insurance Company (BTA) has expanded the property insurance policy coverage. As a result of the changes, the policy will cover wider risks of damage caused by rain and flooding.

BTA Property insurance policy has provided one of the most comprehensive coverages in Latvia for many years. It not only intends to compensate the expenses for repairing the damage caused to the home itself but also insures the residents’ belongings and smart devices. However, climate change has brought challenges that were not relevant in Latvia in the recent past. For example, the cyclone Kirsty experienced at the end of July clearly showed that society was not ready for this challenge. BTA has already paid out almost 4 million euros to 733 customers for the elimination of the consequences of natural disasters and is currently considering more than 400 applications, whose amount of indemnity will approach two million euros, reaching a total of 6 million euros. The extent of the damage caused by the heavy rain prompted BTA to expand the definition of flooding in the Property Insurance policy.

From now on, customers can apply for indemnity in cases where the cause of the flooding is heavy or long-lasting rains, instead of just flood waters. The insurance will cover losses when the property is damaged by water from overflowing bodies such as rivers, lakes or backyard pools due to rains or floods caused by too much water accumulating in the yard. This applies both to populated areas, where the sewage system cannot cope with water drainage, and to rural homesteads, where the ground is unable to absorb the excessive amount of precipitation. Taking care of customer safety and comfort, the insurance company has already informed 27 thousand BTA Property Insurance policy owners about the expansion of the flood definition.

“The experience of the last couple of years shows that as a result of heavy rain, a deep layer of water can remain in basements, underground parking lots and yards for several days. Thus, not only do the foundations of the building get damaged, but the water also soaks into the walls and floors and enters the house. As a result, it is sometimes necessary to carry out cosmetic repairs in the home and repair or replace damaged furniture. Prolonged floods near private houses also tend to wash away pavements, damage terraces and outdoor furniture,” Kārlis Liepiņš, Director of BTA’s Insurance Claims Department, lists the typical cases read in compensation applications received from customers.

The property insurance policy includes a new additional risk, which provides for the reimbursement of repair expenses if, during the rains, water enters the premises through a leak in the roof, panel seams or poorly installed, closed windows. The additional service costs only EUR 20 per year and covers losses up to EUR 2,000.

Additional information:
Līva Strautmane
Internal communication manager in the Baltics
BTA Baltic Insurance Company AAS
e-mail liva.strautmane@bta.lv
mobile: 26065133