Once again, heavy bouts of flash flooding have hit London, among other parts of the UK. With much of Southeast England drenched in up to six inches of rain, the aftereffects of this flooding have been anything but subtle. Buildings have been left damaged, highways have had to be closed, and hundreds of people are facing losses in both business and their homes.
In times like these it is those with insurance that fare better. Not only does their insurance package cover the incurred losses, but they are also able to resume from a better standpoint. Knowing what insurance policy to take out, however, and the full extent of its claims is tricky business. There is a lot of thought that goes into the process, which is why we at Forum Insurance aim to help our valued customers.
Most people are surprised when they learn that home insurance, both the homeowners’ and tenants’ version, does not cover flooding, and it's caused damages. This is because flood-induced water damage is regarded as a gradual rather than sudden happening. Therefore, individuals who deem their home or business vulnerable to flooding need to take out flood insurance to protect themselves from bearing the costs.
Most people take it for granted that flood cover is included under their home insurance or landlords policy. However, if the premises is in a high flood risk area, flood cover may be excluded. It is possible to get separate flood cover.
Generally speaking, there are three main branches of flood insurance covers, and your selection depends on your status as a homeowner, business owner, or tenant. Here’s a brief on all three:
Homeowner
Flood insurance policies for homeowners cover the house’s structure as well as its belongings. Usually, the same insurance cover extends to both the building and the contents, giving individuals the ease of taking out a single insurance package. As for pricing, the amount will vary according to the location of your home, the size of your home, and whether or not you fall in a high-risk flood zone.
Business Owner
If you’re a business owner, then the nature of your flood insurance cover will differ slightly. A business owner’s flood insurance will include the building’s foundation, finishings, plumbing, electrical work, equipment, inventory, and furniture, among other things. Again, insurance for the building is not separate from insurance for its contents.
Tenant
The third and last category for flood insurance is that of a renter. If you’re living on rent, then your flood insurance coverage does not include the building itself, but rather the contents such as the furniture, electronics, clothes, artwork, and the likes. The renter’s version also does not come in parts.
So, you must be wondering whether or not taking out a flood insurance cover will be beneficial to you or not. After all, a flood is not an everyday occurrence. And is it really a smart decision to pay monthly premiums for an event that may not even occur? Well, we at Forum Insurance believe so, especially if you are living in a high-risk flood zone.
Flood insurance carries a range of benefits, and it is always better to be on the safe side. Looking at the flash floods that recently occurred across the UK, there is a stark difference in how those with and without flood insurance are doing.
Here’s a
rundown of how insurance helps out when flooding strikes:
Easier to Deal with Legal Matters
Since insurance is a legal requirement in many parts of the world, having this cover makes it easier for individuals to deal with the legality of matters when instances such as flooding do occur. Not only does this save money, but it also saves a lot of time as legal proceedings are often lengthy entanglements.
Burden-Free Loss Payment
Individuals affected by the UK floods that had insurance will benefit greatly from the loss payouts that their insurers will provide them with. This takes away the worry of where losses will be paid from and places the affected individual in a more financially stable position.