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Extract from the Flood
Forum web site...
Below
are some of the steps that you can take if you are experiencing
problems with your Insurer. The National Flood Forum is working
hard to keep a dialogue going with the insurance industry
and we will continue to do so. Many of the problems we have
heard of have been resolved by the policyholder challenging
the insurance company. If you are experiencing problems, please
let us know by letter, e-mail or leaving the information on
the insurance problem section on our website.
We are
not in a position to act as an intermediary in individual
insurance matters, but all the information we can collect
will help us to put a strong case to the insurance industry
as a whole.
The Association
of British Insurers has agreed to investigate reports of difficulties
in obtaining insurance from their membership, which covers
the majority of insurance companies. They recommend the following
action if you are experiencing problems getting insurance.
· First, discuss the matter with your insurer. Ensure that
you speak to a senior member of the underwriting team. The
first 'screen' for applications/renewals is likely to be handled
in a standard fashion, with no assessment of individual circumstances.
Consequently not all the pertinent facts may have been accounted
for in the initial response. Taking the issue higher creates
the opportunity for dialogue and a level of decision-making
on an individual basis. If there have been previous claims,
the insurer will want to know it any action has been taken
locally e.g. new/improved flood defences, other local works
and/or any modifications or additions to your property to
improve flood resistance, which will include fitting flood-resistant
flooring, moving electrical points, or installing simple flood
barriers.
If you
continue to have problems following the above step, you can
write to the Association of British Insurers with details
of you insurance company, the policy number and an account
of the discussions with the company, including any relevant
facts as featured above: The Association of British Insurers,
51 Gresham Street, London EC2V 7HQ. The ABI will take up issues
concerning refusal of insurance. They will not however intervene
on premium rates and other policy conditions such as policy
excesses. They do recommend that people shop around to get
a competitive quote. · In addition, if you are experiencing
difficulties with insurance cover, you need to inform your
mortgage holder. They not only need to know; they may also
be able to help you. If you find that the excess on your policy
is so high that you will not be to afford a claim should flooding
recur, your mortgage lender may be able to find you a policy
with a higher premium but a minimal excess, so that in the
event of flood damage you will be able to use the policy and
make a claim. It is not in your mortgage lender's interest
for you to be in a situation where flood damage will not be
repaired. · You can also write to The Financial Ombudsman,
South Quay Plaza, 183 Marsh Wall, London E14 9SR.
ABI
Statement - 26/09/02....
ABI STATEMENT OF PRINCIPLES ON
THE PROVISION OF FLOODING INSURANCE General policy It is the
intention of ABI members that flood insurance for domestic
properties and small businesses should continue to be available
for as many customers as possible. The premiums charged and
other terms - such as excesses - will reflect the risk of
flooding but will be offered in a competitive market. This
statement of principles will apply from 1 January 2003 but
is subject to review in the event of significant external
shocks such as withdrawal of flood reinsurance. Successful
operation of the principles is dependent on planned information
on risk levels and investment being available from the relevant
flood defence authorities. Areas currently defended to DEFRA
standards The majority of properties in flood risk areas are
already protected to the Department of Environment, Food and
Rural Affairs' indicative minimum standard of 1 in 75 years
for urban areas, or better. The level to which properties
are defended above this will vary considerably and premiums
will reflect different degrees of risk; but flood cover will
be available as a standard feature of household and small
business policies. High risk areas where improved defences
are planned by 2007 In a number of locations the risk of flooding
is unacceptably high. Existing flood defences provide less
protection than the Department of Environment, Food and Rural
Affairs' indicative minimum standard of 1 in 75 years for
urban areas. Where improvements in flood defences sufficient
to meet these standards are scheduled for completion within
the next 5 years, insurers will maintain flood cover for domestic
properties and small businesses which they already insure.
The premiums charged and other policy terms - such as excesses
- will reflect the risk. If a domestic property in this category
is sold the current insurer will continue to provide cover,
subject to satisfactory information about the new owners of
the property, especially their previous claims record. Where
a small business is sold the current insurer will consider
whether to continue to provide cover; this will depend heavily
on the proposed new use of the premises and the previous claims
record of the new owner. High risk areas where no improvements
in defences are planned There are other locations where the
risk of flooding is unacceptably high - and in some cases
they have been shown to flood frequently - and no improvements
in flood defences are planned. Here insurers cannot guarantee
to maintain cover, but will examine the risks on a case by
case basis, use their best efforts to continue to provide
cover and will work with the owners of domestic properties
and small businesses which they currently insure to see what
action could be taken by the property owner, the Environment
Agency and the local authority, which might make the property
insurable in some form. This action might include the use
of accredited products, flood resilient materials and temporary
defences to defend the property. Action from Government The
implementation of these principles will depend on action from
Government as detailed below with an annual review of progress:
· actual expenditure on flood defences to meet or exceed that
set out in the 2002 Spending Review; · implementation of the
improvements in the system of flood defence planning set out
in DEFRA's consultation "Flood and coastal defence funding
review"; · full implementation of PPG25 (Planning Policy Guidance
on Development Planning and Flood Risk), with full reporting
of the level of compliance by local authorities and consideration
of administrative processes in the planned review of PPG25
in 2004; · the Environment Agency's flood asset database to
be available to insurers by the beginning of 2003, and publicly
available as soon as possible; · early improvements in the
flood warning system, and implementation of the Cabinet Office's
recent emergency planning review; · full and detailed consideration,
including a benefit/cost analysis, to be given to integrated
drainage management for England and Wales, similar to that
in operation in Scotland; · implementation of realistic solutions
to sewer flooding including increased investment in improvement
programmes and adoption of water companies and sewerage undertakers
as statutory consultees in the development planning process.
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