Around 5m people in the UK live in flood risk areas, and with some areas having seen the wettest-ever February with doubtless more rain to come, claims for flood damage are likely to rise.
There are however lots of misconceptions around insurance and flooding, which might prevent homeowners from getting the right protection.
Here, we bust some of the biggest myths surrounding flood damage and home insurance and reveal the truth behind them.
Contents
- Myth 1: You won’t be able to insure a property that’s flooded before
- Myth 2: All insurers assess flood risk properties in the same way
- Myth 3: You’ll always have to pay the excess upfront
- Myth 4: If you’re flooded you need to keep damaged carpets and items as evidence
- Myth 5: Insurers drag their heels with claims
- Myth 6: I don’t need to think about flood insurance
- Myth 7: All insurers deal with claims in the same way
Myth 1: You won’t be able to insure a property that’s flooded before
Getting insurance for a property that’s flooded before can be more tricky and expensive than for a property that hasn’t flooded, but there are plenty of insurers who are willing to offer cover.
One in six homeowners live in a property at risk of flooding, so in 2016, the Assosication of British Insurers (ABI) launched the Flood Re scheme which makes it easier for customers in this position to find insurance with affordable premiums. The scheme is set to run until 2039.
Flood Re is a reinsurance scheme which every insurance company in the UK pays into. It effectively works as insurance for insurance companies, enabling insurers to use Flood Re to underwrite the flood risk part of the home insurance policies they offer. This means that they can offer more affordable premiums to their customers as they have spread some of the risk that they’ll have to pay out for flood claims.
There are some criteria your property will need to meet to be covered by the scheme, including:
- You must live in the property, rather than letting it out
- Your property must be in the UK
- The property must have been built before 1 January 2009
- Your council tax band needs to be between A and H
- The property must be a single residential unit or a building comprising of two or three residential units
- You must have had a valid home insurance policy in place prior to the flood.
The scheme is available to people buying properties now, as well as current residents.
Myth 2: All insurers assess flood risk properties in the same way
Different insurers assess flood risk differently, so the premiums one insurer might charge could be drastically different to those offered by another.
If you live in a property that’s at risk of flooding or has flooded before, then looking at standard comparison sites might not be the best option. Instead, it could be better to look at which insurers are part of the Flood Re scheme here and compare the policies available from them.
You can also contact the British Insurance Brokers Association (BIBA) website to find contact details for brokers specialising in Flood Re.
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Myth 3: You’ll always have to pay the excess upfront
The insurance excess is the amount you’ll be asked to contribute towards your claim before your insurer will pay out. It’s a feature of most insurance policies, but many people aren’t aware that you don’t always have to pay it upfront.
Depending on your insurer and your policy, you might actually be able to have your excess deducted from your payout rather than having to find the cash before works can begin.
This is particularly useful for people whose properties have flooded or are in a flood risk area as the excess levels on these policies can be high. So when taking out a new home insurance policy, it’s a good idea to ask the insurer how they manage excess payments in these sorts of scenarios.
Myth 4: If you’re flooded you need to keep damaged carpets and items as evidence
When you make a claim for flooding in your property, insurers will often send out a loss adjuster to your property to assess the extent of the damage and check the value they’re paying out is correct.
During this assessment the loss adjuster will often want to see any damaged furniture, soft furnishings etc that you are claiming for as evidence.
However, the Association of British Insurers (ABI) says that while in normal circumstances these items should be retained until the loss adjuster has visited and agreed that they can be disposed of, it’s worth knowing that:
Damaged items don’t have to remain inside your property
If you have outside space then it’s acceptable to move damaged items such as sofas and carpets into your back garden. Keeping these items in place could actually end up doing more damage, as they can trap moisture, so if you’re able to, it’s best to remove them from your home.
Make sure you take relevant safety precautions when dealing with items damaged by flood water. Flood water can be hazardous to your health as it can be contaminated with a variety of harmful things such as raw sewage, animal waste, industrial waste and so on. When moving items, wear a protective mask, gloves and boots for protection and wash your hands thoroughly afterwards.
If you don’t have space, you might be able to throw things out
If you don’t have outside space AND the loss adjuster can’t visit for several days, it’s reasonable that you might need to throw things away.
When you speak to your loss adjuster, you should make them aware that you don’t have anywhere to put the damaged items outside of your property and get their advice on what you should do. You should also ask what evidence they’ll need you to collect to help support your claim.
If you do throw items away, make sure you take appropriate steps to document the evidence of what you’ve thrown away. You should take a number of photos of the items, including any details like serial numbers, or makes and models. You can also keep samples of the fabrics of your items so you can replace like with like. For example, you could keep a square of carpet, a portion of curtains and so on.
Whatever approach your insurer takes, this process should be relatively fast. You should hear from your loss adjuster within two days of contacting your insurer and if they need to visit they should do so within seven days of the water receding.
Myth 5: Insurers drag their heels with claims
Lots of people assume that insurers take their own sweet time with addressing claims, but when it comes to flooding claims, the ABI says that insurers first priority is to get their customer’s life back on track as soon as possible. Insurers will often offer a range of assistance measures in the immediate aftermath of a flood. These may include emergency payments, alternative accommodation and appropriate repair work, depending on the extent of the claim.
The ABI also says that your insurer should meet the following deadlines once you’ve reported that you need to make a claim:
- Within two days – your insurer or loss adjuster will contact you to discuss next steps
- Within seven days of water subsiding – If needed, your loss adjuster should visit in this time span if they need to assess the damage
- Within four weeks of discussion with loss adjuster – your home should be cleaned and any damaged furnishings removed.
The next steps depend on the extent of the damage as your home is disinfected, dried, repaired and/or reconstructed and whether you decide to take a payout or let the insurer manage the repair works for you.
If your insurer organises the works for you, then often you will not see any of the money, but it will be used to fund the repairs. You should be kept informed of the timelines throughout the process.
If you decide to take a payout and organise repairs yourself, you’ll usually need to provide your insurer with quotes for the work involved. Once they’ve agreed to the work, your insurer might break down the payments in a number of ways. For example, they might give you an initial payment and then agree to further payments at relevant points in your repairs, or they might give you a lump sum and allow you to manage things yourself.
If you opt for the payout route, then best practice says that your insurer should still support you to make sure that your repairs are carried out by qualified contractors to an adequate standard.
Ultimately if you are unsure about payments or anything to do with your claim, it’s always best to speak to your insurer directly.
Myth 6: I don’t need to think about flood insurance
There are lots of different reasons your property might flood, and while most people will think they’re safe if they don’t live near a body of water that could flood, there are plenty of other reasons that could cause flooding, including:
- Pipes bursting
- Blocked drains
- Ground water
- Rising water
- Surface water
Sadly extreme weather events mean flooding is becoming more frequent across the country, and while many of us assume we don’t need to worry about our homes flooding, it’s worth checking whether you’re at risk and preparing for it all the same.
Gov.uk has a few tools that can help you understand your flood risk. This tool outlines the risk of flooding in the next five days, while this one gives you an overview of your long term flood risk. You can also sign up to receive flood warnings here.
Myth 7: All insurers deal with claims in the same way
No two insurance companies are the same and they will all deal with flooding claims differently, so if you’re considering taking out an insurance policy it’s really important to read the terms and conditions and policy wording carefully to understand exactly what your insurer says it will do.
It’s also worth doing a little research into how your insurer has dealt with other flood claims in the past. Looking on review sites such as TrustPilot can be useful to find out whether customers feel as though they’ve been treated fairly.
Dealing with the aftermath of a flood can be really overwhelming and it’s important to feel supported. If you’re not happy with the way your insurer has handled your claim, you should complain to the Financial Ombudsman Service, which is free to do. Find out more in our guide How to complain about a financial company.
Finally…
It’s important to know that if you’re struggling with things, there are places you can turn for help and support.
You can read more about what to do if you think your home is at risk of flooding and steps to take if the worst should happen in our article What should I do if my home is flooded?
The National Flood Forum offers flood recovery support services to individuals and communities affected by floods.
If you feel like your mental health is suffering as a result of the stress and anxiety that flooding has caused, then the following organisations can offer help and support:
- Mind (0300 123 3393)
- Rethink mental illness (0300 5000 927)
- Anxiety UK (03444 775 774)
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