The insurance bill for damage caused by floods during the winter of 2015 and 16 cost £1.3bn, but is your property covered if you are flooded and what should you do if you need to claim?
The value of claims for those affected by Storms Desmond, Eva and Frank (part of the 2015–16 UK and Ireland windstorm season) has topped £1.3bn according to the Association of British Insurers (ABI) with homes and businesses making almost 15,000 claims. The three storms caused widespread flooding and damage across the UK in December, with Yorkshire, Lancashire, Cumbria in England and central and north-east Scotland among the worst affected.
The ABI says that around £24m in emergency payments has already been paid to families and businesses. More than 8,300 properties have received visits from loss adjusters and more than 3,000 families are now in alternative accommodation. The average insurance claim for damage is £50,000, well above the average of £31,000 for the storms of winter 2013-14.
December’s floods caught many local authorities, which had flood plans in place, by surprise. With climate change constantly in the news, there is no guarantee that this is the last we have seen of unprecedented rainfall levels. So what should flat owners do if their homes are damaged by floodwater?
The ABI advises that anyone with flood-damaged possessions should:
- Contact their home insurer for immediate advice on what to do next- in some cases an inspection of possessions will not be necessary
- Dispose of any items that are a health hazard, such as rotting food
- Take photos of damaged items before throwing them away
- List, as far as possible, details of damaged items
- For items like carpets and soft furnishings, take a cutting as this can help your insurer in providing a similar replacement or cash payment
Despite assurances from the industry, according to Paul Hendy of the Scottish Flood Forum, many people felt “abandoned and frustrated” by their insurance company. Some homeowners have reported difficulties getting through to their insurer to register a claim, and waited weeks for a visit from a loss adjuster, meaning delays before dehumidifiers were installed leading to further damage, he said.
Belinda Thorpe, Managing Director at insurance broker Residentsline Limited, comments that the situation has been overwhelming. “It’s not just taking care of our clients that’s putting pressure on insurers, but dealing with the other knock-on effects. For example, hotels and other temporary accommodation resources are being inundated by claimants needing temporary accommodation plus trade people are having to be brought in from other parts of the country to assist with the demand for repairs.”
Belinda’s advice for homeowners is to check that you have adequate cover before you are faced with an emergency situation such as flooding or storm damage. With 3,000 homeowners requiring alternative accommodation following the recent storms, ensuring your buildings insurance policy protects you is key, she says.
Midway Insurance MD, Paul Robertson, also urges flat owners to check their policy wording carefully. Insurance documents tend to be complex and one misread word can completely change the meaning of the policy. If in doubt ask your insurer or broker to explain any clauses you don’t fully understand. Paul’s top tip is only to buy from a firm that specialises in block insurance. “They will be able to advise you on anything that could revoke your cover, such as flat roof inspection requirements. Any reputable insurer will also have modified the policy to remove any unreasonable parts that shouldn’t apply to a block of flats,”.
In the event of a successful claim you will still normally need to pay an excess amount. This is the first part of a claim that you are liable for and will have been pre-agreed with your insurance provider. The amounts can vary from £100 upwards and could cause unexpected cash-flow shortfall, especially as some insurers are applying large flood excesses. However, excess cover is available that allows you to reclaim the full excess amount, so you are not out of pocket and the cover provided includes claims for subsidence and flood.
Finally, don’t forget to insure your contents. Contents insurance can be arranged from as little as £100 a year.
Reviewed: September 2019
