The All-Russian Union of Insurers (VSS) and Rosgosstrakh have clarified that car owners whose vehicles were damaged by severe weather may be eligible for KASKO insurance payouts. However, they emphasized that the specific conditions and covered risks vary by individual KASKO policy and are not always universally considered insurable events.
Previously, Tatiana Pozdnyakova, a lead specialist at Moscow`s meteorological bureau, reported that Monday, July 21st, saw the heaviest rainfall in the city since 1879. Between 9 AM and 12 PM on that day, precipitation levels reached 30.8 mm near the Timiryazev Agricultural Academy, 39.4 mm in Konkovo, and a significant 57.3 mm on Varshavskoe Highway.
The VSS stated: “Car owners whose vehicles are damaged by adverse weather conditions may claim compensation under their KASKO policies, provided such policies are in place. KASKO is a voluntary insurance, and its terms, including the scope of covered risks, are determined individually by each insurer and detailed in the insurance agreement.”
While most KASKO policies cover natural disasters, the union noted that “mini-KASKO” plans might exclude such risks. If a vehicle is damaged, the owner should immediately photograph the damage as it occurred and contact their insurer for instructions on how to proceed.
Lyudmila Yusova, head of auto insurance claims at Rosgosstrakh, echoed this sentiment, confirming that “only motorists with a pre-arranged voluntary KASKO policy can expect compensation for water damage. However, it`s crucial to understand that not all instances of water damage to a vehicle will be classified as insured events.”
Yusova highlighted that in the insurance sector, widespread flooding, even after torrential downpours, falls under the “natural disaster” risk category. To be covered, this specific risk must be explicitly part of the insurance policy. She clarified: “Full-coverage KASKO products – including those with deductibles, installment plans, or deferred premium payments – typically incorporate the `natural disaster` risk. Therefore, water damage to a car during a flood would generally be recognized as an insured event.”
She further explained that Rosgosstrakh`s “RGS Auto Protection” policy`s standard terms for “natural disaster” risk encompass a broad range of severe natural phenomena, including storms, tsunamis, typhoons, hurricanes, tornadoes, hail, floods, overflows, ice drifts, ground movement or subsidence, landslides, rockfalls, earthquakes, avalanches, mudslides, volcanic eruptions, natural fires, and lightning strikes.
Yusova also pointed out that more affordable KASKO policies offering partial coverage are popular among motorists. “These plans might not include `natural disaster` as a covered risk,” she warned. “Consequently, the insurer will not compensate for damages, leaving the financial burden of vehicle repair entirely on the owner.”
Yusova further explained that the type of damage is crucial for an event to be considered insurable. For instance, “hydro-lock” (engine failure due to water intake) is generally not covered by standard KASKO policies, meaning no compensation is typically paid. She clarified that hydro-lock often occurs when drivers attempt to navigate through flooded areas, drive on submerged streets, or start a vehicle while it is in water.
“However, if `hydro-lock` was specifically added to the policy during its inception, it would influence the compensation decision,” Yusova added. She noted that payouts for such incidents can be substantial, potentially reaching 30-50% of the vehicle`s value, as they often require engine replacement. As an example, she cited a maximum payout last year of 536,500 rubles by Rosgosstrakh for the repair of a 2023 Haval F7X, owned by a policyholder in Tatarstan, due to hydro-lock.
Sogaz also reported that damages like hydro-lock incurred while driving through flooded conditions are frequently the most severe and expensive. They advised, “If your car is damaged, it is absolutely crucial not to start the engine or attempt any self-repairs before a professional inspection. KASKO policyholders should contact their insurance company immediately.”
For those without KASKO, Sogaz recommended documenting the incident thoroughly with photos or videos of the scene, water levels, vehicle damage, and the condition of the storm drainage system. They suggested seeking an independent expert assessment and, if justifiable, pursuing compensation from the responsible entity (such as the road infrastructure authority) through legal channels.
