Flood cover must be seen as standard
Paul Thompson, CEO Cavere Group, writes a regular column in Mortgage Introducer Magazine.
FloodRe made a return to the headlines in January when it announced it had cut the reinsurance premiums it charges to insurance companies thereby lowering the cost of flood protection for those most at risk of flooding.
As one of the first to provide FloodRe to brokers we often get asked if more still needs to be done to raise awareness of the importance of affordable flood insurance. My answer is always that flood cover should no longer be considered a non-standard purchase, it must and can be written as standard.
Unfortunately, as there’s no consensus amongst insurers or a standard flood risk database, the result currently is that some insurers class an area as a risk when others don’t. This can undermine the intermediary’s ability to find the customer the right product.
It also highlights the importance of having a GI provider with the experience and relationships with insurers that back into FloodRe, rather than those that accept or decline flood cover based on potentially inaccurate historical data.
I urge intermediaries to not shy away from flood risks, cover is standard and available and it’s no different to selling normal buildings and contents, you just need to use the right provider.