Compensation for Flooded Vehicles Can Be Processed Through Insurance Using Own Car Coverage
Flood Damage to Houses and Shops Covered by 'Fungsuhae Insurance'
On the 9th, when record-breaking heavy rain fell in Seoul and the central region, this is the scene of vehicles submerged by the heavy rain around Gangnam Station in Seocho-gu, Seoul. If you have purchased comprehensive car insurance, you can receive compensation for the damage.
[Asia Economy Culture Young Intern Reporter] As record-breaking heavy rain pours down in the metropolitan area causing damage such as flooding and power outages in various places, there is growing interest in how compensation for flooded houses and vehicles is being handled.
Natural disasters are supported by the government in the form of disaster relief funds. To receive disaster relief funds, the affected area must be designated as a 'special disaster zone,' and compensation typically ranges from 1 million KRW to up to 10 million KRW. Natural disasters refer to cases caused by weather warnings or equivalent natural phenomena, or when rainfall exceeds the warning issuance criteria. Claims must be reported within 10 days after the damage occurs.
On the morning of the 10th, a flooded car was left abandoned near Gangnam Station in Seoul. [Image source=Yonhap News]
◆ How to Get Compensation for Flooded Vehicles
For flooded vehicles, whether you have purchased the car insurance coverage for own vehicle damage is important. According to the non-life insurance industry, if you have own vehicle damage coverage, you can receive compensation for 'flood damage' if your parked car is damaged by flooding or swept away by floodwaters, or if your car becomes unusable while driving through flooded areas. Compensation applies whether the damage occurred while the car was parked or being driven.
However, if the vehicle was parked in a police-controlled area, or if the driver was aware of flood warnings through news alerts but still parked the vehicle in a low-lying area resulting in flooding, or if the vehicle was driven recklessly on already flooded roads, or illegally parked in no-parking zones, partial driver fault may be recognized and surcharges may apply.
If rainwater entered the vehicle because windows or sunroofs were left open, compensation is not possible at all. Compensation cannot be received for items inside the car. Whether the vehicle is declared a total loss (write-off) or repaired depends on the floodwater level. If the vehicle was intentionally flooded, compensation is not only denied but it may also be treated as insurance fraud and punished.
The compensation amount is based on the vehicle’s value, and compensation will be paid up to this amount. The vehicle value can be checked on the Korea Insurance Development Institute website.
Experts advise that if a vehicle is flooded, do not attempt to start the engine forcibly and contact the non-life insurance company with which you have your car insurance. Starting the engine when water has entered can cause additional damage to engine components. Meanwhile, if the vehicle is irreparable due to flood damage and is scrapped to purchase a new car, submitting a 'total loss certificate' can provide benefits such as reductions in acquisition tax and registration tax.
On the 9th, a restaurant owner near Sindebang Station in Gwanak-gu, Seoul, is cleaning up the flooded premises caused by heavy rain overnight. Flood damage to houses and commercial buildings can be compensated through flood insurance.
◆ Flooded Houses and Commercial Buildings Should Have Flood and Wind Damage Insurance
Flood and wind damage insurance is a policy insurance managed by the Ministry of the Interior and Safety and operated by private insurance companies, providing coverage for damage to houses, greenhouses, and other structures caused by typhoons, floods, heavy rain, strong winds, wind waves, tidal waves, heavy snow, earthquakes, and other flood and wind disasters. The government supports up to 92% of the insurance premium, making it relatively affordable.
Flood and wind damage insurance offers compensation amounts that are somewhat broader and closer to the actual damage amount compared to disaster relief funds.
If you have subscribed to flood and wind damage insurance, report the accident to the insurance company, and an adjuster will inspect the damage and guide you on the necessary documents. First, take detailed photos of the damage and prepare and submit proof of damage documents such as the building management ledger, resident registration certificate, and repair cost estimates.
Home fire insurance also covers flood damage. It provides compensation for house flooding under special clauses related to flood and wind disaster risks caused by water or wind such as typhoons and floods.
Policy insurance flood and wind damage insurance and disaster relief funds cannot be compensated simultaneously. However, in cases of human casualties, compensation from flood and wind damage insurance and disaster relief funds can be received together.
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