Storm Harry, Climate Risk, and the Importance of Appropriate Insurance Cover

A Recent Reminder of Environmental Risk

The recent impact of Storm Harry on Malta served as a timely reminder of the increasing exposure individuals and businesses face from environmental and weather-related events. Strong winds, heavy rainfall, surface water flooding, and disruption to infrastructure affected multiple sectors and highlighted the financial consequences that can arise from severe weather.

While such events were once considered exceptional, they are now occurring with greater frequency and intensity, reinforcing the need for prudent risk management and forward-looking insurance planning.

Increasing Frequency and Severity of Natural Events

Across Malta and the wider Mediterranean region, observable trends indicate a rise in:

• Severe storms and high winds

• Intense rainfall leading to flash flooding

• Coastal and surface water impacts

• Weather-related disruption to commercial activity

These developments underscore the importance of recognising environmental risk as a material consideration for property owners, businesses, and insurers alike.

The Role of Insurance in Risk Management

Insurance forms a key component of a broader risk management strategy. Appropriately structured policies can assist in mitigating the financial impact of insured events by providing support for repair, replacement, and recovery.

Depending on policy terms and conditions, insurance may respond to:

• Storm and wind-related damage

• Water damage resulting from insured perils

• Loss or damage to buildings, contents, and commercial assets

• Business interruption following an insured loss

It is important to note that cover is subject to policy wording, limits, excesses, exclusions, and applicable conditions.

Addressing Common Misconceptions About Natural Perils

A frequently encountered misconception is that damage arising from natural perils is automatically excluded from insurance cover. In practice, this is not universally the case.

Many property insurance policies include storm-related perils as standard, while other risks—such as flooding—may be covered subject to specific terms or optional extensions. Coverage varies between policies and insurers, making it essential to review documentation carefully rather than relying on general assumptions.

Understanding the scope of cover is critical to avoiding uncertainty at the time of a claim.

The Importance of Regular Policy Review

Events such as Storm Harry highlight the need for periodic review of insurance arrangements to ensure they remain appropriate and aligned with current risk exposures. Key considerations include:

• Accuracy of sums insured in line with rebuilding or replacement costs

• Clarity on which perils are included or excluded

• Adequacy of limits, deductibles, and policy conditions

• Changes in use, occupancy, or operational risk

Professional advice can assist in identifying gaps and ensuring cover remains suitable.

Supporting Informed Insurance Decisions

As a tied insurance intermediary, our role is to provide clear information, explain policy terms, and support clients in selecting insurance solutions that reflect their individual risk profile and regulatory requirements. While insurance cannot prevent adverse weather events, it can play a vital role in financial resilience and recovery when insured losses occur.

Conclusion

Storm Harry underscores a broader reality: environmental risks are evolving and should be addressed through informed planning and appropriate insurance arrangements. Challenging misconceptions, understanding policy coverage, and reviewing insurance regularly are essential steps in ensuring preparedness in an increasingly unpredictable environment.

Next Steps

If you are uncertain about how your current insurance arrangements respond to weather-related risks, you are encouraged to speak to your insurance intermediary or professional adviser. A review can help clarify coverage, limitations, and whether your existing policies remain appropriate for your circumstances.

This article is intended for general information purposes only and does not constitute advice. Insurance cover is subject to policy terms, conditions, exclusions, and insurer acceptance.