Gyeonggi-do "Flood and Windstorm Insurance Premiums Lowered Starting This Year"

Gyeonggi Provincial Government

Gyeonggi Province has announced that the Flood and Windstorm Insurance will be changed to "Flood, Windstorm, and Earthquake Disaster Insurance," and the average premium will slightly decrease compared to last year. They urged residents to subscribe to the Flood, Windstorm, and Earthquake Disaster Insurance in advance.

Flood and Windstorm Insurance is a policy that practically compensates for property damage to houses, greenhouses, and small business owners (stores and factories) caused by natural disasters including heavy snow, typhoons, floods, heavy rain, tidal waves, strong winds, storms, heavy snow, and earthquakes. The government and local governments support more than 70% of the insurance premium, allowing subscribers to join with a relatively low burden of 30% or less.

Starting this year, the legal name of the insurance will be revised from "Flood and Windstorm Insurance" to "Flood, Windstorm, and Earthquake Disaster Insurance," effective from May. The government amended the "Flood and Windstorm Insurance Act" to the "Flood, Windstorm, and Earthquake Disaster Insurance Act" to make it intuitively clear that damages caused by earthquakes as well as floods and windstorms are covered.

In addition, according to major policy decisions made through the Flood and Windstorm Insurance Deliberation Committee, the average insurance premium will change compared to the previous year. Accordingly, for houses with an area of 80㎡, the premium for fixed compensation will change from 43,900 KRW to 34,900 KRW, and for actual loss compensation, from 42,200 KRW to 37,600 KRW.

Furthermore, to reduce the disparity in premium rates by region, all products have been grouped and classified, and a weighted average rate system has been applied. To strengthen the coverage of the insurance, only products with 90% compensation of the insured amount are operated, improving the insurance products.

Subscriptions to Flood and Windstorm Insurance can be made at Eup, Myeon, and Dong administrative welfare centers or through seven private insurance companies (DB Insurance, Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, NH Nonghyup Insurance, Hanwha General Insurance, Meritz Fire & Marine Insurance).