With the storms likely to cause significant damage, businesses as well as homes are set to suffer from damage from uprooted trees, debris such as loose roof tiles and damage to telephone and internet lines. Heavy rain is likely to cause flooding, particularly where the ground remains saturated from last week’s storms in Scotland.   ’The Times’ is predicting the worse storms since 1990. 

Whilst Insurers generally accept claims for storm damage where gusts are in excess of 47 knots, it is worth noting that Policies do not cover general maintenance or wear and tear.  Of course, severe storm conditions may cause damage regardless, but it is worth checking that rendering, chimney’s and the general condition of the roof are all in a good state of repair as Insurers may argue that damage to these was as a result of poor maintenance as opposed to storm damage.

Products offered on the market traditionally consist of insurance offered at the point of purchase, as part of a special deal with, for example high street banks or as an endorsement on household policies. More recently, on-line products have sprung up offering specialized insurance to a potential market audience who prefer to ‘shop’ in this way.

Whilst the mobile phone insurance market would argue that its products offer value for money and a specialized service, they have being against recent criticism from consumer groups and the ombudsman. ‘The Post’ reports that the Financial Ombudsman Service (FOS) has seen an increase in specialist insurance complaints – 1791 formal complaints last year — a 66% increase on 1076 the previous year. The FOS attributes around half of these specialized insurance complaints to mobile phones.

According to consumer group Which? the best value is that offered as a typical endorsement to household insurance by adding to personal possessions outside the home to contents insurance. It is important to consider other factors however when reviewing mobile phone insurance. For example, loss/theft is a frequent occurrence which could impact household premiums.

Insurance companies are expected to take a sympathetic view to businesses affected by the riots – honouring claims for business interruption where there may not be actual physical damage. The Government has been quick to accept its obligations under the Riot (Damages) Act 1886 and Public Order Act of 1986, though aspects of the riot considered in light of this legislation raise questions regarding their interpretation.

Considering the extent of the riots, the number of claims and their total anticipated cost – scrutiny of the current system seems inevitable warn insurance experts.

Whilst some flooding is caused by from River Flooding the most common cause of flooding experienced is that of surface water. Where the drainage system is unable to cope with heavy rainfall the results can be catastrophic and where there is flooding of the sewage systems there may be resultant water contamination.

Residential properties and business are often seriously impacted by flood. With increased claims for flooding, Defa report that repairs to homes after flood damage can be in the region of £10,000 – £50,000, insurance premiums continue to rise. Not only is it more expensive to get adequate insurance cover for your home (with some homeowners unable to get cover at all), but Insures are stipulating conditions that home owners and businesses are required to implement in order to take steps to minimise potential loss. Get advice as to how to protect your property from the Environment Agency. The Statement of Principles agreement, which some insurers subscribe to currently commits these insurers to offer flood cover in high-risk areas, but this is to be reviewed in 2013 and may leave many more homes and business without cover.

Whilst coming to terms with a flood, especially one in which you have not had the time to prepare against is traumatic, having someone on hand to deal with you insurance claim and knowing that at least all aspects of your loss will be covered and your property will be correctly dried and reinstated gives peace of mind and saves additional stress. See how AJC Consultants can be of assistance.