In February 2022 many parts of England and Wales were battered by severe storms causing extensive flooding to homes and businesses. The UK Met Office have warned that many parts of the country are yet again set to experience severe flooding in February 2023 – a prediction the forecasters attribute to a global weather phenomenon called La Niña.
Malcolm Tarling, from the Association of British Insurers, told The Independent*: “The rising flood risk in the UK is probably the most demonstrable indicator of our changing weather patterns. From an insurance perspective, it is something that has concerned us for some time. All the indicators suggest it is something that is getting worse.”
Whilst residential properties benefit from the Flood Re scheme many businesses in flood zones struggle to find affordable flood cover or flood cover is simply excluded.
Some insurers apply a blanket approach to flood cover for businesses without looking in detail at the actual premises which may have been adapted to mitigate flood risk. This can result in flood cover being excluded altogether or premiums being increased to unsustainable levels. Given the increasing risk of flooding, insurers are driving up premiums and imposing tighter terms and conditions.
Grosvenor Insurance can help access alternative flood cover even if properties have experienced previous flooding. Quotes for flood cover have been available in over 90% of cases, regardless of flood history.
Flood cover operates in a slightly different manner to traditional insurance. Sensors are installed in premises at an agreed height and should the floodwater reach the sensors then payment of the agreed sum is automatically paid out to the insured within 7 days. This is called parametric insurance. The payment can be used for any purpose. The flood cover can be used as a bolt on if your main policy excludes flood or as a top up of existing cover. It offers a flexible alternative to traditional flood cover.
Flood cover is available to businesses, including businesses trading from home and landlords or property owners, where the property is owned through a company.
If you would like more information about flood cover please give us a call or email us and quote reference Flood999
*9 November 2022