Based on the estimates considered most reliable by the Bank of Italy, the value of homes potentially exposed to floods is close to 1.000 billion € (to the values of 2020), about a quarter of the total, and the resulting expected annual loss can be estimated in the order of three billion euros.
Italy is subject to a high hydrogeological risk.
According to the estimates ofHigher Institute for Environmental Protection and Research (ISPRA) relative al 2020, the 20 percent of the population resides in potentially flood-prone areas and the 2,2 percent is located in areas with a high risk of landslides.
The housing stock represents one of the main components of the wealth of Italian families and, accordingly, the factors that influence its value can have significant effects on the economic choices of individuals.
First of all, the greater number of extreme climatic events could lead to an increase in physical damage to the housing stock. Secondly, the changed picture of risks affecting the stock of houses could be incorporated into property values, leading to significant adjustments in household wealth.
In Italy the value of homes exposed to flood risk is equal to 991 billion euros at the values of 202022, or the 23,3 percent of total housing wealth.
The Natural Disaster Guarantee
Insuring your home means protecting yourself in the event you directly suffer damage. They are usually so-called "multi-risk" policies because they offer the possibility of taking out one or more of the following guarantees: fire, theft and civil liability towards third parties, glass breaking, ecc.
Subscription to the so-called "Natural Disasters" guarantee against catastrophe risks covers damage resulting from earthquakes and floods. Generally this extension is sold as an optional guarantee as part of fire or multi-risk home protection policies.
Click below to download the Bankitalia report:
The impact of flood risk on real estate wealth in Italy
Click below to watch the ANIA video:
How to protect our home from floods
Alex Gaetani