With the intensification of climate change, the problem of house damage caused by land subsidence in many parts of Europe is becoming increasingly serious. The house of Bernard Weiss, a resident in the suburbs of Paris, has developed large cracks due to soil shrinkage, and the repair cost may be as high as 200,000 euros. The European Central Bank estimates that the potential losses faced by financial institutions in the eurozone due to the subsidence problem exceed 2.5 trillion euros, while the related losses in France by 2050 could reach 43 billion euros. Homeowners and local governments are attempting to identify subsidence as a natural disaster through legal means in order to force insurance companies and the government to bear compensation, but the progress is slow.
Europe has become a hard-hit area for subsidence problems due to its clay-rich soil and rapidly warming climate. The value of houses in countries such as the Netherlands and the United Kingdom has dropped due to subsidence, and the repair costs are high and usually not covered by insurance. The risks are particularly prominent in areas such as east London. Although the CatNat insurance plan in France offers some coverage, it has suffered losses for eight consecutive years due to a sharp increase in claims. Insurance companies have warned that future claims could double, leading to higher premiums and even denial of coverage in some areas.
This dispute highlights the profound impact of climate change on the economy and society. Homeowners are under the double pressure of house depreciation and huge maintenance costs, and the insurance system is also on the verge of limit due to the pressure of compensation. Some towns in France have jointly sued the government, demanding a broader disaster determination, but the legal process is lengthy. With the arrival of the hot and dry summer, the subsidence problem may further deteriorate, forcing all parties to seek solutions as soon as possible.
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