Storm Damage Anyone?

I apologise to anyone affected by the above heading, it’s not meant to be flippant at all.

But when working in this industry, you think you will ultimately get a handle on events and problems. 

Yet I read in last saturdays’ Times newspaper that some Insurers are now to trying avoid paying out on policies they have issued, by suggesting that where your home has suffered flood damage it may not have been caused as a result of a storm as they know it, citing that storms need to be over 50 mph to register a claim.

That’s not just questionable behaviour if true, but downright sickening. Do these guys never learn?

I read in an industry journal that the recent flooding will mean claims of more than £3billion will be paid out, (but when they will pay out is omitted) making the recent flood damage the worst for 5 years.

Insurers, to give them credit, have hustled this and the previous government to develop greater flood defence systems, but seem to be on a losing wicket up against rhetoric, vacillation and delay. 

The result of this inactivity is that some areas will become uninsurable, which is horrendous. 

As a broker we sit in the middle of this and are literally powerless, but we can make a little difference by highlighting to you what is going on and to mark your card and ask the right questions. 

Insurers may argue that continuous rain does not constitute a storm therefore they will not pay out fully. But we find abhorrent and not acceptable and certainly not in the spirit of why you took out cover from them. 

It has to be said that not all Insurance companies are the same, so don’t please tarnish them all with the same brush.  At Trident we believe we place your cover with what we feel are the best on price and cover. But remember, like all insurance if price is your key focus, don’t please expect the best cover. Much as we would all like that to be the case the two really don’t go together.   

A Fresh Tax on Home Insurance!

The Environment Secretary, Caroline Spelman, is proposing a 10% flood tax on your home insurance premiums to help cover damage in the aftermath of the recent floods.

Our view is that this is another stealth tax and should only be considered if something, say like the fuel tax is reduced, so in the end the consumer is not handicapped. 

The problem with stealth taxes is that they get installed but never get removed and always seen to increase.   

I think it would first be fair to ask first what difference the money already gone to the flood defences actually made and if it was found to be insufficient address that matter before Ms Spelman looks to take yet more money. 

These notes are not meant to be political, but sometimes you have to ask where do governments get their ideas from?  

Well you heard it here first, just sorry it wasn’t good news, and let’s just hope the sun comes out and stays out!!