Rising damp
This summer's floods broke all records. Jason Woolfe asks how brokers could help their clients if it happens againHistory will remember it as the summer of the floods. During June and July, huge swathes of England and Wales were lashed by rain. Puddles became ponds and fields disappeared under water.
As rainfall figures broke all records, swollen rivers burst their banks, unleashing devastation and misery. According to the Association of British Insurers (ABI), almost 60,000 household and commercial claims have been registered, at a total cost approaching £3bn.
What makes it particularly extraordinary is that there were really two floods. In June, Yorkshire was the worst hit, with £1.5bn of damage to 27,500 homes and 7,000 businesses – claims averaged £30,000 and £90,000 respectively. In July, flooding hit again further south, costing another £1.5bn, with 17,500 domestic claims averaging £40,000 and 7,500 business claims averaging £90,000.
Met Office figures show that this has been the wettest early summer since records began 240 years ago. So, must brokers and insurers prepare for regular cataclysmic weather events resulting from climate change?
Met Office meteorologist John Hammond says that, even without decisive evidence to confirm or refute global warming as the culprit, the trend is for wetter winters and milder summers.
“Recent research suggests we will see more heavy rainfall events,” he says. In light of this, industry bodies such as the ABI and the British Insurance Brokers’ Association (BIBA) have called on the government to re-think the wisdom of building new homes on floodplains.
How can brokers adapt?
Lisa Kerry, Manager of Household Claims for Hiscox, says the insurer received more than 800 flood and storm claims.
“The brokers’ support at this time is invaluable to us,” she says. “The customer has taken out their policy through the broker because they want that extra service – so the more assistance the broker can give the client with the presentation of the claim, the easier it is for us to settle it quickly.
“If you’ve got two feet of water sloshing around your legs, you need your insurer straight away – no messing around. You need to know they’re going to get someone out to help you immediately.”
Peter Staddon, head of technical services at BIBA, says that the best course of action for brokers is to adapt to extreme weather events by doing what they do best – good old-fashioned customer service. “Brokers must be the face of the industry. Manage the situation for the client. Just be there and be their friend,” he says.
Despite the volume of claims, Lisa Kerry says that Hiscox maintained its customary level of service throughout, and that is something she wants to be able to say again if – and when – the extraordinary floods of summer 2007 are ever repeated.
Claims Zone: “My claim was resolved in ten days”
Alexander Kennedy is a special-interest tour operator, running fly-fishing trips overseas. He’s lived in his house in Chelsea, London, for almost 30 years.
“We were away at the time of the flash floods on the 20th of July this year. We returned to find that our study had been flooded, which, as you can imagine, was a lovely surprise.
“Water had poured off the roof onto the balcony outside our bedroom, which had then overflowed, bringing down the ceiling of the study below. As a result, quite a few things were damaged, including an antique desk, the made-to-measure carpet, the television and a few incidental items of some significant value.
“After getting all the repair and replacement estimates, I filed the claim on the 8th of August through our broker, Gauntlet, and received a cheque from Hiscox on the 17th. I thought that was pretty good, considering that I am still struggling with my buildings insurance provider.
“I would certainly recommend Hiscox to others, and will probably move my buildings insurance to them. I was very satisfied with the service I received – I haven’t had a contents claim of this amount before, but when the cheque was in the post within ten days, no questions asked, I can find very little to complain about!”