From Next Year, the Government Will Cover Over 70% of Flood and Windstorm Insurance Premiums
Up to 92% for Housing, Greenhouses, Small Businesses, and Disaster-Vulnerable Areas
[Asia Economy Reporter Jo In-kyung] Starting next year, government subsidies for insurance premiums of 'wind and flood insurance,' which protects citizens' property from various wind and flood disasters such as floods, typhoons, and heavy snow, will be significantly increased.
The Ministry of the Interior and Safety announced on the 30th that from 2021, government support for wind and flood insurance premiums will be provided at rates ranging from 70% up to a maximum of 92% for houses, greenhouses, and small business owners (stores and factories).
In particular, to encourage residents in disaster-vulnerable areas with a high risk of wind and flood damage to subscribe to wind and flood insurance, a minimum government support rate of 87% or higher will be applied.
Accordingly, the actual insurance premium burden for subscribers is expected to be greatly reduced. For example, the insured's premium for a house (80㎡) will decrease from 29,100 KRW this year to 18,400 KRW next year, and the insured's premium for a small business owner (insurance amount 150 million KRW) will drop from 80,000 KRW to 60,200 KRW.
The Ministry of the Interior and Safety also plans to encourage subscription to wind and flood insurance by selecting residents who have received disaster relief funds due to wind and flood or earthquakes, residents in areas where disaster prevention projects have been implemented, and residents in areas included within flood trace boundaries as focused subscription targets.
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Kim Jae-heum, Disaster Recovery Policy Officer at the Ministry of the Interior and Safety, said, "Due to recent global warming, the risk and frequency of large-scale natural disasters are increasing, making it necessary to prepare in advance," adding, "We hope that many citizens will subscribe to wind and flood insurance, for which the government supports most of the premiums, to protect their property from natural disasters themselves."
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