Best to if you are covered before you are flooded, insurer warns
Insurer urges homeowners to check flood insurance
Friday, 27 Jun 2008 15:43
With thousands still homeless after last year's floods, insurer Hiscox is warning homeowners to check what service their insurer would provide in a future event.
Sir Michael Pitt published his long-awaited report into the floods this week and said lessons needed to be learned.
Insurer Hiscox believes homeowners in at-risk areas need more education about what to expect from their insurer should the worst happen.
Hiscox UK managing director Steve Langan said: "As Sir Michael has pointed out, there were significantly different levels of service experienced by the people affected by the floods in 2007.
"Too many people see insurance as a commodity, partly because the insurance industry has, for too long, sold itself on price and not highlighted the value of service. Last year's events have proved that, at present, homeowners can suffer as a result.
"Because it is a low interest purchase, most consumers don't look at the detail and think that all home insurance is more or less the same. In fact, you get hugely different levels of service from one policy to another.
"Like most things in life, you get what you pay for."
Waiting for another crisis before taking action would be a bad idea, Hiscox said.
"Homeowners need to think beyond price and scrutinise the service they are entitled to in the event of a crisis of this nature. And the insurance industry needs to consider carefully how it markets itself, so that homeowners are able to make a more informed choice," Mr Langan said.
Hiscox also urged the government to make flooding a priority, calling for better management of flood plains.