An Insurance Broker’s Opinion of the ABI Flooding Conference – “Fighting Flood Risk Together”

First of all: Please see the following BBC News Interview with Neil Cook Flooded properties - November 2009 http://www.youtube.com/watch?v=xEgBpYs_RU4 about their previous promise

IN TOTAL CONCLUSION - IF YOU LIVE IN AN AREA THAT HAS BEEN FLOODED OR A RISK OF FLOODING THE ASSOCATION OF BRITISH INSURERS WILL LIE CHEAT AND CON YOU. Any use the new flood mapping to justify this

THE ENVIRONMENT AGENCY ESTIMATES THAT THERE ARE 5.2M HOMES AND BUSINESSES IN THE UK THAT ARE AT RISK OF FLOODING THAT’S 1 IN 6

THAT FIGURE WILL INCREASE BY AT LEAST 10% BY 2013
BY 2013 THE ABI AGREEMENT WILL CEASE TO EXIST

The following comments were observed through the course of the event

The current statement of principles for flood victims expires in 2013 although the current version that in short, promises the following is not in fact fit for purpose and holds very little water.

1 Anyone who suffered a flood claim will be offered renewal

2 The premium offered will affordable and the excess sensible

3 If the property is sold the policy will transfer to the new buyer at same terms

Any insurer that is deemed to be a new entrant is excluded any so a major ABI insurer will often use several brand names such being the insurance provider for supermarket type chain or OAP organisation. This in fact to their advantage not yours!

So this will be reworked ! ?! YES BUT ONLY IN FAVOUR OF ABI INSURERS

Proposed methods of help
THE GREEN DEAL home owners with be rewarded if they fit flood defence, sadly most insurers wont give a dam!

During the meeting headed “sharing flood risk” a representative of one of the largest insurers in the world praised the UK method of offering flood insurance as part of the policy and commented that “the principle of insurance that everyone pays into the common insurance pot so that gets paid out from” that is the way insurance works the ABI disputed it!

The ABI muted that those who flooded or are in high flood risks areas will have to buy flood cover as a separate policy typically you will pay £1000 or much more extra to be protected against flood, flood victims and those in very high risk areas could be charged many thousands of pounds with flood excesses in excess of £10000

Home owners will be expected to fit flood defences to their property but will not be rewarded for doing in so. PLEASE beware of inflated prices for flood defences and discounted flood defences after various flood grants a typical flood gate for a door cost s around £250 so don’t be fooled into paying any more and don’t be fooled into buying too equipment the cost to defend a typical property should be no more than £1000

It was stated that in 2007 there were 180,000 properties flooded alone no that figures is now double that of course that includes property in the UK and Northern Ireland

Various flood groups etc fought these proposals but were ignored! They also commented that the UK economy is supported by property value without flood cover whole areas of the country will become ghost towns as those properties become worthless as without affordable flood cover they cannot sell

No reply was given

The point was raised that the under the agreement, cover should transfer to future buyers But does not no comment was given

In Keswick at least 1 in 12 property owners are refused insurance in Morpeth the figure is 1 in 10 that will increase around 5 fold within 2-3 years

Lets hope and pray that when the recent snow there are no more floods

Source Neil Cook Insurance Broker

See also: UK flood damage costs up 200%

UK flood damage costs up 200%

The ABI - Association of British Insurers issued a press release yesterday- 24th November saying "Massive rise in Britain's flood damage bill highlights the need for more help for flood vulnerable communities says the ABI"

The News release went onto say "Britain’s rising flood risk is further underlined today, with figures published by the ABI showing that the cost of flood damage since 2000 has leapt by 200% on the previous decade.

With more people set to be at significant risk of flooding, the ABI is calling on the Government
to ensure that spending on flood defences is targeted to the most flood vulnerable communities.

.One in six homes in England is currently at risk of flooding. Nearly 500,000 people face a
significant flood risk, and it has been estimated that this could rise to 840,000 by 2035
without adequate investment in flood defences.1

ABI’s figures highlight the huge financial cost of flooding:
• Since 2000 insurers have paid out £4.5 billion to customers whose homes or businesses
have been hit by flooding. This is up 200% on the £1.5 billion paid in the previous decade in
real terms.

• Major floods since 2000 have included the 2007 summer flooding which resulted in insurers
paying out £3 billion, the 2005 floods in Carlisle that cost £272 million, and the Cumbrian
floods in November 2009 costing £174 million.

• Reasons for the rise in flood costs include the increased frequency and severity of flooding
in the UK and the growing problem of surface water flooding (the Environment Agency has
estimated that 2.8 million properties are at risk of flooding from surface water). It has been
previously estimated that the total value of assets under flood risk exceeds £200 billion –
more than the current budget deficit.

These figures were released at the ABI’s flood conference “Fighting Flood Risk Together” held
today. At the conference over 100 representatives from the insurance industry, policy makers
and community groups discussed the impact of the Government’s recent announcement of a
cut in flood defence spending, and what needs to be done to tackle the UK’s flood problem.

Speaking at the conference, Tim Breedon, ABI Chairman and Group Chief Executive, Legal and General, said: “Flooding devastates lives and communities. Insurers play a key role in helping those affected recover, but prevention must be better than cure. The recent announcement of a cut in Government investment in flood defences was disappointing, and it is now vital that Government spends its money wisely to bring real improvements where they are most needed.”

Barry Smith, Chairman of ABI’s Property Committee and Chief Executive of Ageas UK, stressed at the conference that: “Millions of customers rely on the financial protection provided by flood insurance, and insurers are determined to do everything possible to ensure this continues. The insurance industry’s flood insurance agreement with the Government, under which insurers commit to offering flood cover to existing customers, expires at the end of June 2013. To ensure flood insurance continues to remain widely available and competitively priced, further investment in flood management is needed when the public purse is in better shape”.

1. Figures on properties at flood risk from the Environment Agency

If you live in area that is affected by flooding or have concerns about your insurance take a look at Flood damage property insurance from Equity and General Insurance Services HERE

See also:An Insurance Broker’s Opinion of the ABI Flooding Conference – “Fighting Flood Risk Together”

Importance of Pet Insurance

Came across this intertesting article about Endsleigh Pet Insurance this morning.

Insurance is a necessary part of everyday life for most people, whether it is for their car, home or health.

Pet insurance is another product that can provide invaluable cover for dog owners for a number of reasons.

The main reason for taking out a dog insurance policy is to pay for unexpected vet bills and help cover the cost of care should your four-legged friend fall ill.

While this is certainly the primary consideration for many people who take out dog insurance, there are other things that pet insurance policies cover which can be particularly useful.

Some insurance products will help when it comes to accidental damage to someone else’s property caused by your pooch and can also provide cover for third-party liability.

If your dog gets lost or stolen, pet insurance can also help towards the cost of advertising and providing a reward for its safe return.

When you start your search for cheap pet insurance, it is worth considering that some of these eventualities may not be covered by the cheapest policies.

One of the first ports of call for many people seeking cheap dog insurance is the internet and price comparison sites can be a useful tool in seeking out the best deals and helping you to compare providers.

If you are looking for pet insurance on a tight budget then you may find that a fee or time-limited policy is more appropriate than lifetime cover, as it will cost you less on a monthly basis.

However, when you are making this decision it is worth considering the breed of dog that you own.

Pedigree dogs in particular are susceptible to a number of health problems as they get older – from arthritis to diabetes – and a long-term condition of this nature could prove costly if you do not have adequate pet insurance.

Taking out a dog insurance policy will provide you with peace of mind, allowing you to enjoy every moment with your furry friend safe in the knowledge that you will be able to provide them with the best level of veterinary care should they need it.

If you’re in the market for dog insurance then check out leading insurer Endsleigh for pet insurance. Endsleigh offers cheap pet insurance to meet your needs.

Originally founded in 1965, Endsleigh has since grown to become one of the UK’s leading independent intermediaries. We specialise in providing insurance solutions for career people offering a product range that starts with students and continues through to retirement and beyond.

If you are looking for Pet insurance for your pet visit http://www.jml-insurance.co.uk/products.php?id=10

Commercial Insurance Guides

Neil Cook an Insurance Broker in the Specialist Risks Department at Equity and General Insurance Services Ltd has written some guides on Commercial Property insurance.

The four guides cover the following topics:

Insurance to protect your business: An unexpected event - such as a break-in, fire, flood or computer failure - could destroy your business. Insurance can cushion the impact of most risks. But if you are not insured against the risk, the effects can be disastrous.

There are many insurance options to protect your business against the unexpected. Analysing risks and carefully planning your insurance cover can give you the peace of mind that, should the unthinkable happen, the impact on your business will be minimised.

This briefing outlines:

• Insurance required by law.
• Protection for you and your business.
• Common insurance requirements.
• How to buy cover effectively.

Making an insurance claim: For most businesses it is not a case of if, but when. You will probably make a claim on an insurance policy at some stage, be it for a catastrophic fire or a minor theft.

Your insurance policy will compensate you for financial loss. This can include replacements,
repairs and even your lost profits.

But insurance cannot guarantee that your customers will wait while you get your business
back on its feet. You need to minimise the business disruption by ensuring quick and full
settlement of your claim.

This briefing looks at:
• What to do when you suffer a loss.
• How to make a claim.
• What your insurer will require you to do.
• How to speed up the settlement.
• Why your claim may not be met in full.

Managing insurance risks: All businesses face a wide range of risks every day. Careful planning can either reduce these risks to an acceptable level, or eliminate them completely.

While insuring some of these risks is essential, it should be seen as no more than a back-up
to an on-going ‘risk management' process.

This briefing tells you:

• What risk prevention you are required to carry out by law.
• The most common causes of loss or damage, and how to prevent them.
• How to identify the risks your business faces.
• How taking preventative action will affect your insurance policies.

and finally Litigation and insurance:- The cost of bringing or defending a legal action can put serious financial pressure on your business, whether you eventually win the case or not.
You could potentially be sued by an employee, a customer, a supplier or a member of the public. Or you could need legal help to resolve a dispute with a government agency such as HM Revenue & Customs (HMRC).

This briefing outlines:
• The most common reasons why businesses are sued, including breaches of legislation.
• The most common reasons why businesses sue.
• What you can do to reduce the risks.
• What insurance you can buy to cover the costs of legal actions.

You can view these four most comprehensive guides by visiting http://www.jml-insurance.co.uk/index.php?id=426

Complaints flood in

The Financial Ombudsman Service has a very good website that I just found when surfing the web about insurance problems, people experience.

Under their ombudsman news I came across this in 2008 archives "complaints involving buildings insurance"

Q: Whether insurer responsible for cost of remedying faults in building work carried out as part of a claim for flood damage

A:Mrs C lived in an old mill house which was badly damaged by winter floods, following prolonged rain and storms. She was insured by the same firm for both buildings and contents and she submitted claims under both policies.

The insurer accepted liability and appointed contractors to carry out repairs to the property. After a few weeks, however, Mrs C concluded that the contractors were making unreasonably slow progress. She discussed the situation with the insurer and said she would like to appoint a local surveyor to represent her and supervise the work. The insurer agreed to her proposal and confirmed that it would pay the surveyor’s fee.

During the course of the subsequent works, Mrs C’s surveyor replaced the existing contractors with a new firm of builders. And Mrs C asked for some additional work to be carried out, at her own expense.

As time went on, Mrs C became increasingly dissatisfied – both with the surveyor and with the standard of the building work. When all the work was eventually completed, she hired a different surveyor to prepare a report on what had been done. He identified a number of faults in the building work and estimated that it would cost just under £50,000 to remedy matters.

Mrs C sent the report to the insurer, together with a claim for the cost of putting things right. However, the insurer refused to meet the claim. It said that as Mrs C had appointed a surveyor to oversee the work, responsibility for any faults lay with him. Mrs C then brought her complaint to us.

Complaint upheld in part
It was clear that there were a number of problems with the building work. Some of the faults listed in the report related to the additional work that Mrs C had asked the builders to carry out. We agreed with the insurer that it was not responsible for putting right any defects in this additional work.

However, we said that the repair work relating to the flood damage was a different matter. The insurer had authorised and paid for the work. And it remained responsible for ensuring that the work was completed satisfactorily, regardless of the fact that – with its agreement – Mrs C had appointed a surveyor to oversee the builders.

We said the insurer should pay Mrs C £20,000 to cover the cost of remedying the defects in the work carried out to repair the flood damage.

The section has some interesting situations like:

" insurer refuses to pay claim for storm damage when it discovers that policyholder is serving a prison sentence"

"claim for flooding and damp in basement after exceptional rainfall – whether policy also covered cost of repairing damaged damp-proofing in walls"


" whether problem with floorboards was caused by a relatively recent flood or by rot that had been spreading for some years"

To read the details of those complaints and the decision of the Financial Ombudsman Service you need to visit http://www.financial-ombudsman.org.uk/publications/ombudsman-news/68/68-building_insurance.html

If you need some help - quotes from a specialist insurance broker dealing with Flood damage property - Ex Offenders insurance and more Click Here

Insurance problems after flooding in Boscastle

Ian Cook an insurance broker, from the Specialist Risks Department at Equity and General Insurance Services Ltd sent us this letter from a client.

Hello Neil,

As requested a few lines regarding insurance renewal premium from A.... Insurance.

It was a feeling of total disbelief that I experienced when noting the renewal premium for my building and contents insurance policy, with A.... Insurance, for my two bedroomed cottage in Boscastle North Cornwall.

From a figure of £429 in 2009, the premium had been increased to £2,729.98 in 2010. The figure was confirmed by the broker at the time, C.... D...

C.... D.... were unable to place the cover with any other company on their data base due to my flood claim in 2004.

I then contacted several well known companies direct but to no avail. A visit to an insurance broker in person also failed to yield any success.

Searching the internet I eventually found a link to you at Equity Gi company details, which provided cover for £374.

This process finding you took considerable time and effort to complete with real concern and associated stress, that I was going to have to find a considerable sum of money to meet a totally unexpected bill from a 'reputable' insurance company!

I think it would be helpful if the alternatives to the likes of A... were more visible, to ensure people are aware that their are options available.

I thank you for your assistance. Kind regards, Ian

If you are looking for insurance for your property and are experiencing problems because you have claimed on it because you suffered flood damage or live an area that could have flods, follow this link to contact Neil Cook.

Insurance broker Neil Cook still helping flood insurance victims

Just over a year ago on the 19th November 2009 the flooding in Keswick in Cumbria took place.

On the 28th November Nick Starling of the Association of British Insurers (ABI) and Neil Cook (in left hand picture) Insurance Broker who works for the Specialist Risks Department of Equity and General Insurance Services Ltd took part in a BCC News studio interview that can be viewed here

One year on people still risk problems of flooding and only last Wednesday 17th November there was severe flooding in Cornwall.

The picture above on the right is of a lady in Keswick. She is badly disabled and was flooded twice the NFF (National Flood Forum) referred her to Neil Cook of Equity and General Insurance Services. Unfortunately she did not have money to buy flood defences. He arranged the insurance and a flood defence company gave the flood barrier free !

The lady wrote to Neil Cook

"I was flooded put in 2004 and the 2009 floods. Both times I lost everything all my memories, pictures, possessions my whole life. Its awful to be flooded its like someone has wiped out your life and existence.

To top it all my insurance company would not cover me any more for flood! Despite the promise insurance companies had made to help flood victims.



I tried everyone and everywhere but could not get anyone to insure me. I was feeling very low by this time with many sleepless nights like so many people across the country in the same position as me, just imagine my shock & horror when I found the out that the flood forum held a meeting at the Keswick hotel to sell flood defences at exaggerated prices they were quoting £3-4000 for defences I knew after I checked several suppliers, were only worth nearer £1000 and wondered why our local flood group leader was not recommending flood defence that are more beneficial to people who need them BUT wondered were the markup on the companies they recommended was going ?!!! It is a total rip off that a charity was behind .

For ordinary people on low wage or benefits what chance do they have the flood group should be for everyone not just the "FAT CATS" who can afford to pay inflated prices but also the cream on top of the prices should not be milked off by the flood group or should the people who in government who fund some of the flood defence grants be ripped off too.



To this end I would like other people to no the real issues



But most importantly I would say a huge thanks to Neil Cook the insurance broker who helped me get flood cover again along with a flood barrier at a premium less than I Paid before because he has a great heart and soul so did not treat me like a real person not just another policy number .



Also I want to give hope to other flood victims or those living in flood plains I hope the flood groups are found out too.



Was stressed but NOW very happy of Keswick

For more information on Flood insurance, visit the Equity and General Insurance Services advertisement page HERE

A complete rebranding of ARLA and NAEA?

There has been a great deal of interest in the NAEA - National Association of Estate Agents in house magazine The Estate Agent and ARLA - The Association of Residential Letting Agents - Agreement magazine over the past couple of months.

The reason for this has been article by an estate agent John Pring who was saying that there is confusion of the number of brands now under the NFOPP - National Federation of Property Proffesionals.

A few years ago they were the NAEA - National Association of Estate Agents. Then got ARLA onboard representing letting agents, then Valuers and Auctioneers and Commercial Businiess Agents, not to mention inventory agents.

So where do they go from here. I personally think most of these brands will go within two years and the National Association of Estate Agents will be the dominant party.

I submitted a letter to both the Estate Agent and Agreement magazines recently and the November / December 2010 issues have just been published.

When will there be a complete rebranding?

Dear Editor

I was very interested to read John Pring’s personal opinion in the Sept/Oct 2010 edition of Agreement.

It would appear that within some three years of the NAEA / ARLA “Marriage” there are views coming through that there are too many names under the NFOPP umbrella.

Reading the comments from NAEA members in the Sept/ Oct 2010 edition of the Estate Agent it seems that many members think there should be a change to branding everything under the NAEA or very similar, they are of course estate agents.

I recollect in the 1980’s when I was an ARLA Council Member and was building up the membership, I contacted the NAEA and they provided me with the full membership list (on convenient to use sticky labels) to circulate information about ARLA and increase the membership from NAEA members involved in lettings. At that time the NAEA did not have any input on lettings hence the reason Neville Lee and John Birch established ARLA.

A year or so later ARLA was informally approached by someone from the NAEA suggesting that ARLA should become part of the NAEA. Fortunately that did not happen and ARLA was able to grow in its own rights. The NAEA then set up a lettings division, however the ARLA name was the one that was always the voice of the lettings business in the media.

I like, Paul Weller of Leaders was not in favour of the takeover of ARLA by the NAEA, however the larger organisation won the day. Since then ARLA has benefited from the management framework in Warwick, but most of the separate identity has now gone and even Agreement and The Estate Agent often share the same features. The NAEA is introducing licensing so maybe within a short while the same licensed estate agent would also be a licensed letting agent as well.

The question now is when will there be a complete re-branding? Had ARLA become part of the NAEA back in the eighties the ARLA name would have quickly disappeared. Today there are now thousands of lettings agents in the UK so the task could prove more difficult, however to save costs, will we be seeing the NAELA (National Association of Estate & Letting Agents) within in the next two years instead?

Philip Suter FNAEA, MARLA

It is interesting to see in the same Agreement magazine as my letter that there is a feature on Paul Weller, Managing Director of Leaders letting agents. Paul now runs one of the largest letting agents groups in the UK. A business his late father in law Neville Lee established in the early 1980's after establishing ARLA with John Birch.

I met Neville on several occasions and am not sure if he would have been too happy about ARLA under the NAEA's umbrella. His son in law Paul certainly is not and the article in Agreement says "Weller is a long-term ARLA member, but not an uncritical one. He opposed the merger with the NAEA, putting himself up as the 'no'proxy vote, meaning that members who were opposed to the merger but who could not attend the vote could vote through him.

In the event, one third of ARLA members voted against the merger, and Weller says he believes that were it to be put to the vote again now more would be against it.

He does remain the ARLA fold: However, we do evaluate it every year and look at the benefits he says. One difficulty is that over the years we have drummed into the staff all the pluses of ARLA membership and so it would be very difficult to reverse that culture. However, we are no longer putting staff through Technical Awards, but doing our own training courses"."

I personally have found the "New ARLA" far too bureaucratic and that is a great shame being involved in the UK letting business for more than 30 years.