An article written in the Sunday Times money section by Ali Hussain on 9 March 2014 found that many household policies contain an exclusion for groundwater-related flood, which is the source of around 25% of flooding in 2014 according to recent figures from the Environment Agency. Policies from Admiral, Esure and Co-op were mentioned in the article.
This is simply not the case with high net worth household policies that will pay claims on flood claims as long as the damage has not been gradual. Another point was mentioned that Hiscox will not cover flood or storm damage to gate, fences etc. This in fact is true of all household insurers as a general exclusion and not limited to just Hiscox.
Direct sellers and websites may highlight the low prices available, but this Sunday Times article simply highlights the benefits of seeking expert advice when buying insurance. A broker understands the risk and can recommend a suitable coverage, and can provide advice and assistance when a claim occurs. It’s a shame that it often takes a disaster to highlight the value of the right cover. As the oil fire fighter Red Adair once said, ‘If you think a professional is expensive, wait ’til you try an amateur.’
The article focuses on the negative side of insurance claims around flooding and not around the positive experience that many of our clients experience with the recommended high net worth insurers we work with. Our recent flood/ storm damage claims have been dealt with in an efficient and timely manner, however the claims service we experience is only as good as the insurers that we use. Aqua Underwriting in a recent claimant survey posted 98% rated the service as excellent with the other 2% as good.
Insurance policies really do amplify the phrase “you get what you pay for”. The online market features the cheapest and quickest method but often is not the most suitable. As an intangible item, one policy (or bit of paper), looks more or less the same as the other. This is fine, until the time where you need to use it most, at point of a claim/ disaster. That is when you wished you sought proper advice through a broker and the chosen the most appropriate policy.