You have probably seen pictures of the devastating damage that flooding can do. However this is not something that is restricted to third world countries or somewhere on the other side of the world. Flooding can affect a number of places and even if you are not in a high risk area this does not necessarily mean it won’t happen. Therefore it pays to make sure you have the right Flood Insurance.
Level of risk
Insurance is based on risk. This is especially the case with flooding as certain areas are more at risk than others. Obvious examples may include properties near the sea. However sometimes it may not be so obvious such as properties built on plains.
The level risk is calculated as follows:
- Low- In a low risk area the chances of flooding are less than 1% (or a one in 200 chance). However you do not want to be the person that suffers due to that less than 1% chance (furthermore because of the relatively low risk your flood insurance will also be relatively less expensive!)
- Moderate- Moderate risk is defined as between 0.5% to 1.3% (one in 75)
- Significant- A significant risk is any chance of flooding that is above 1.3%. If you are in a significant risk area then it is very strongly recommended you get cover. While this may cost more than lower risk areas it is better to be prepared as floods are more likely to occur and are also likely to be more damaging than in areas with a lower risk.
What is flood insurance and what does it cover?
In simple terms flood insurance or flooding insurance is cover that an insurer provides in the event of any damage caused by a flood. This is not just in terms of structural damage but also the knock on effects of water damage caused by flooding.
For example while it is obvious to see the physical damage that happens when water floods a property. However if the walls are damaged the moisture left over can cause mould and mildew do develop in the home. If not properly cleaned out this can result in sickness and discomfort as well as a considerable drop in the value of your property!
The reason that you need to be aware of this is that the amount of Flood Home Insurance cover an insurer provides can vary. This means that while the initial physical damage may be cover up with the clean up afterwards may not be. What one provider offers as standard may differ from another so it is important to check this when asking for a quote.
Coverage can include:
- Repair and replacement of broken furniture and personal items
- Repair of fixtures and fittings
- Any professional fees involved (for example solicitor or architect fees)
- Temporary accommodation while your home is being repaired
What you need to check
When arranging a policy you have to check what you are paying for. “New for old” means that if your property is damaged you will receive a pay out that covers new items. If it is an indemnity cover then you will receive a pay out equivalent to the value of what you own (so an older TV that cost £100 that gets damaged may only result in a payout of around £30-£50 due to depreciation).
Do I need flood insurance?
In some cases flood insurance is a precondition of a mortgage. Usually this refers to buildings rather than contents cover. However given the amount it would cost you in order to replace all the items you own most people usually get contents cover.
In the case of rental properties this may be covered by your landlord. It is always advisable to check to make sure that you have the insurance in the event of any damage.
You may have problems getting covered if you live in a very high risk area or if your property has previously been damaged by flooding. In some cases people can get quoted very high premiums even if they have never suffered flooding purely because of the postcode they live in.
Choosing the right broker
In short when getting flood insurance it pays to find the right broker to get the appropriate cover for your local area. We can offer what you need at the best possible price. The sooner you do this the better! For more information COMPLETE our Quote form at the Top Of The Page and see what we can do for you or Tel 0191 5657590