Insurance Frequently Asked Questions (FAQs)
Insurance
The information contained below is intended to be a
consolidation of various issues and questions about insurance which
have been raised by the public in a number of situations through a
variety of channels.
Q: I’m in a flood area – are insurers
going to refuse to offer me flood insurance cover?
A:
Insurance companies that are members of the Association of British
Insurers (ABI) have a commitment to provide insurance for
properties in flood warning areas. The Scottish Government
and the ABI have issued a joint statement to this effect:
Until 30 June 2013 ABI members commit to: ‘Continue to make
flood insurance for domestic properties and small businesses
available as a feature of standard household and small business
policies if the flood risk is not significant (this is generally
defined as no worse than a 1.3% or 1 in 75 annual probability of
flooding).
Continue to offer flood cover to existing domestic property and
small business customers at significant flood risk, providing the
local authority has announced plans and notified the ABI of its
intention to reduce the risk for those customers below significant
within five years. The commitment to offer cover will extend to the
new owner of any applicable property subject to satisfactory
information about the new owner.’
Q: What will happen after June
2013?
A: The Scottish Government and the ABI are committed to ensuring
that flood insurance remains as affordable and widely-available as
possible. It is anticipated that by this time, the provision
of affordable flood insurance will have become a matter of
course.
Q: My insurer is refusing to renew the
flood coverage part of my policy
A: Under their obligations as members of the ABI, an insurer cannot
do this.
Q: Insurance premiums will go up when SEPA
identifies me as living in a flood risk area
A:
SEPA’s flood maps should have no influence on insurance
premiums.
Q: My policy excess has increased
significantly after being flooded – what can I do?
A: It is worth shopping around for quotes. If you can
demonstrate that you have taken steps to minimise potential flood
damage (for example by installing flood protection products) then
insurers may take this into consideration when calculating
risk.
Q: Is flood damage covered by buildings
or contents insurance?
A: Both types of insurance will offer cover in the event of flood
damage. Some insurers offer stand-alone flood insurance
policies covering both the structure of the building and its
contents. Please check the details of your policy for any
exclusions.
Q: My insurer has asked for a flood
risk report – can SEPA provide this?
A: SEPA does not
issue flood risk reports for properties. This is different
from England and Wales, where our equivalent body (the Environment
Agency) does issue flood risk reports.
Q: I’ve been flooded – how do I make a
claim?
A: Call your insurer’s 24-hour claim line as soon as
possible. Your insurer will discuss your requirements for
alternative accommodation and ask questions about the extent of the
damage. Keep your own photographic records of the damage.
Q: I’m not happy with my insurer – who
do I complain to?
A: In the event that you’re not
satisfied with any part of the insurance or claims process, you
should use your insurance company’s own formal complaints
procedure. Alternatively, you may contact the Financial
Ombudsman Service on 0845 080 1800.