Thursday 17 June 2010

Policy holders face the backlash of the floods


Although the Association of British Insurers and all the member insurance companies did a great deal


to help the victims of floods in Cumbria and surrounding areas. As they did for earlier victims of floods.


Policyholders of both residential policies and businesses could be in for an unpleasant surprise when they get their renewal notices ! Its not only those in the obvious recent flood areas that need to be cautious ! Although in a famous BBC interview last year, coming soon to a screen near you.

They did pledge 3 things :

1 IF YOU HAD BEEN FLOODED YOU WILL BE OFFERED RENEWAL WITH FLOOD COVER

2 THE RENEWAL PREMIUM WILL BE SENSIBLE AND THE EXCESS WILL BE PRACTICAL

3 WHEN YOU SELL THE HOUSE OR BUSINESS COVER WILL TRANSFER TO THE BUYER

The specialist providers advertising on the jml Insurance website are seeing a vast increase in the number of clients you being refused cover at renewal or at best being charged sky high premiums with excesses for flood damage in excess of £5000. So this promise from the ABI is not working.

Think also of the additional implications, if your excess for flood is over £5000 your mortgage company have the right to foreclose the mortgage and if you are refused flood cover all together in truth the mortgage is void!!!!!


Worse still if you sell the buyer wont get cover so you are stuck with a worthless property !!


HOWEVER if your property is in an area highlighted by the Environment agency as being at risk of a possible! Flood cases has been seen were the last time as area was flooded was perhaps over 20 years ago you will in fact face the same problem !


Your insurers may decline to offer renewal or vastly increase the premium and with most segments of the insurance industry following the same pattern you will find it almost impossible to get cover


A case was reported the other day of client who’s house was affected during the heavy rains of 5 years ago although it was definitely a storm damage claim as the gutters on his home could not cope it was marked indelibly on the claims records as a flood claim and until he found cover from our specialist providers he could not sell the house unlike the rest of the insurance industry, once you buy a policy from our providers it will pass to future buyers

The country is still in the brink of financial trouble with businesses and home owners doing everything they can to stay afloat high insurance premiums are becoming a major issue that cannot be afforded.

On a regular basis the specialist provider advertising on the jml Insurance website offer quotations with all the cover required without issues about flood at premiums that are lower than the rest of the market.







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