How does auto insurance cover damage from natural disasters like the one in Rio Grande do Sul?

The effort in crisis management in a tragedy is to save and care for people. In Brazil’s biggest and most complex climate tragedy, which hit Rio Grande do Sul, thousands of people affected by the floods were rescued from places at risk. But negative records continue to rise: they are already 90 dead, 132 people missing It is 361 injuredaccording to the most recent data from Civil Defense.

Once the worst moment of the tragedy has passed, when the waters begin to recede, it will be time to account for all the losses. And many drivers affected by the rising waters in Rio Grande do Sul will at some point ask themselves: will the insurance also cover the damage caused to the vehicles?

In case of flooding, the first step is always to find a protected place. As for car insurance, Marcelo Sebastião, president of the car insurance committee at FenSeg (National Federation of General Insurance), explains that, in comprehensive insurance, called ‘total insurance’, — which covers partial and total collision, fire, theft , theft, damage caused by nature and its consequences — there is coverage in the case of partial or total flooding caused by fresh water, including in basements, hail and trees.

“In the event of flooding, it is common for the vehicle to be completely lost due to the extent of the damage suffered. If the insured has comprehensive car insurance coverage, they will receive the full amount, in accordance with the Fipe Table and the policy clauses. [contrato]”, explains lawyer Thiago Junqueira, partner at Chalfin, Goldberg & Vainboim. “Note the term freshwater: in matters related to losses arising from seawater, in these cases, there is no support”, warns Fernando Linhares, director of operations and business development at Korsa.

Igor Marchetti, a lawyer in Idec’s relationship area, explains that, if there is this coverage provision in the insurance policy, the consumer may demand payment of the premium (amount paid to insurers) defined for claims up to the policy limit.

“If coverage for floods is included, without any specifications or limitations, the consumer has the right to receive the amount defined in the insurance, as it is up to the insurer to bring limitation rules in advance, and it is illegal to deny it for reasons unknown in advance to the consumer”, comments Marchetti.

Sebastião also highlights that, in the case of insurance that does not have comprehensive coverage, damage from floods and flooding will not be paid. “And for those who have it, there will be no coverage in the case of intentional worsening of the risk, such as: forcing the vehicle to pass through a flooded area that does not allow traffic”, he reinforces.

What precautions to take?

Igor Marchetti, lawyer in Idec’s relationship area, reinforces that, if the driver enters a street that is already flooded, it may be considered that he has put the vehicle at risk and, after expert analysis, if it is found that this has happened, it may be denied coverage.

In floods, it is recommended to turn off the vehicle until the water level drops or look for roads that are not flooded to avoid damage. “A vehicle that is taken over by water, but is turned off, will be identified as an incident subject to coverage, but if it is identified that the vehicle had contact with moving water and submerged, this payment requirement may be discussed,” says Marchetti.

Gabriel de Britto Silva, a lawyer specializing in consumer law, agrees that when the consumer assumes the risk of driving the vehicle through a known and excessively flooded area, acting recklessly, coverage may be excluded.
Lawyer Stephanie Almeida, from Poliszezuk, highlights that, to avoid losing coverage due to flooding and floods, it is important to follow some precautions. Look:

• stay informed about weather conditions;
• Avoid driving in areas prone to flooding during severe storms;
• Do not drive through flooded areas. Avoid this type of region, especially when you cannot determine the depth of the water;
• Do not force the vehicle to cross the flooded area, as this may result in significant damage and put safety at risk;
• Be aware of your insurance coverage;
• Take preventive measures, such as parking in elevated areas.