by: Richard Green
We have just had the first year?s anniversary of the flash flooding which occurred at Boscastle in Cornwall.
The floods saw some of the worst damage wrought by sudden rainfall in the UK for many years.
The flood was caused by the remains of a hurricane which crossed the Atlantic, collecting vast amounts of water crossing, and was then pushed high above an area inland of the village depositing around 1,500m litres (330m gallons) of water within two hours.
At the time insurance companies were estimating the bill for commercial damage to local businesses, would be as high as ?15m.
There is perhaps some comfort for insurers in that it could have been worse. Hurricane Charley, which hit Florida around the same time, cost over an estimated ?6bn.
In August this year, just a week after Birmingham was battered by a tornado, residents in Bristol witnessed a twister which was up to 1,000 ft (300metres) long sweeping across the skies over the southern suburbs.
The twister swept across a 15-mile area, including the suburbs of Whitchurch, and came close to causing widespread property damage.
Both government organisations and insurers have admitted that with global warming increasing, they have seen an increase in the number of serious weather related incidences.
The Governments environment agency has stated that, ?climate predictions also indicate that Britain will be windier. One study suggests 30 percent more gales in Wales and southern England in winter, increasing the risk of another storm like that in 1987, which left ?2 billion of damage in its wake.?
According to the environment agency, ?current estimates are that peak river flows in Britain could be 20 percent higher by 2080. This could have important implications for the flood zones of rivers - in a review of flood defences last year, the Environment Agency found that a tenth of the population in England and Wales now lives on flood plains? The combination of sea level rise with high tides and changes in winds could increase the frequency of extreme water levels?and hence risk of flooding?in some east coast locations by ten, or even, twenty-fold.?
The Association of British Insurers ( www.abi.org.uk/ ) support this view stating in a recent report that, ?in the UK, climate change could increase the annual costs of flooding by almost 15-fold by the 2080s under the high emissions scenario, leading to potential total losses from river, coastal and urban flooding of more than $40 bn (?22 bn).?
Some insurers had threatened to start cancelling high risk policies unless the Government invested heavily in providing improved flood defences.
As part of cost benefit studies, the Government has introduced new flood planning procedures, which mean that highly-populated flood plains like the Vale of York will receive additional help with defences, but less populated areas may end up with nothing.
These measures go some way to helping some of the more highly populated areas against flooding, but do nothing for regions with lower population densities, and provide no protection against other costly emergencies such as hurricanes or acts of terrorism.
A recent report by the insurer Axa warned that fewer than 50% of small firms do not have a plan in place to ensure that their business could survive should they be hit by an emergency or disaster. Axa highlighted that many businesses, especially in the South East, are not covered against environmental risks such as fire and flood, and fewer have any protection against the now high profile terrorism threats.
Following a claim, such as for a fire, or flooding, most household insurance policies will cover the cost of alternative accommodation, if the property is uninhabitable; likewise, many companies have business interruption cover, which will pay the cost of alternative accommodation, however this is not always guaranteed and you need to carefully check the policy wording.
Even if you do have insurance, you need to ensure that it is suitable for your needs.
Wherever you obtain your insurance, whether it is from a direct insurer such as Norwich Union, brokers like Endsleigh, or through comparison sites such as Moneynet ( http://www.moneynet.co.uk ), it is vitally important to check all your coverage details.
Many people in Boscastle believed that they were completely protected, only to discover after the floods that they had become victims to under-insurance. If the level of cover obtained is not adequate, then insurers may only pay a proportion of a claim, taking the view that you have been under-paying on premiums.
Several residents in Boscastle faced insurance shortfalls of up to 50 per cent.
Thankfully in the Boscastle flooding, despite fears from the emergency services, there was no loss of life; however as the fire fighters union fears following the London bombings, exclusion clauses placed into life insurance policies could mean that many individuals do not currently have any cover for certain unpredictable emergency events which are out of their control.
The upshot appears to be that the current situation is one of caveat emptor, or "let the buyer beware".
A situation that is likely to get worse with global warming causing increased extreme weather conditions, and rising terrorism threats.
At the end of the day, for consumers to ensure they have the correct financial protection, they must actually read all the official cover documents, check the details, and examine all the clauses, when they take out any financial product, if they are not to find themselves out of pocket when a claim needs to be made.
About The Author
Richard lives in Edinburgh, occasionally writing for the personal finance blog Cashzilla ( http://cashzilla.blogspot.com/ ), and reciting Vogon poetry.
|
Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker
Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker
by: Philip L. Franckel, Esq.
I don't sell car insurance, but as a lawyer practicing in the field of personal injury I frequently see people suffer because they have the wrong insurance coverage. Often, this happens because they purchased directly from an insurance company instead of an independent broker.
Many of my clients who have been seriously hurt in a car accident were struck by someone who had no insurance or only the minimum liability insurance coverage, which is $25,000 in New York and much less in many other states. Unfortunately, many of my clients were sold insurance policies with liability limits of $100,000 or $300,000, but were not sold matching uninsured and underinsured coverage.
Just this week, yet another new client had this problem. My client was a pedestrian crossing the street when she was struck by a car which fled the scene. The driver...
Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker
Insurance > Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker
Buying Life Insurance Online ? Is It A Really Good Idea?
Buying Life Insurance Online ? Is It A Really Good Idea?
by: Michael Challiner
The advent of the internet has opened up the possibility of cheaper life insurance for all.
In years gone by, if you were considering life insurance you would probably have invited an insurance salesman from your favourite insurance company to meet you or alternatively gone to your local insurance broker. But rarely would you have been courageous enough to get competitive quotations. It just wasn?t done. You trusted the salesman to do the best for you and surely you thought, life insurance is somewhat technical and requires specialised knowledge. All very cosy. All very expensive. How life has changed!
People now realise that life insurance is not that complicated. If on a scale of 1 to 10, buying car insurance online rates 9, life insurance must be a 7 or 8. This has opened up the Internet as a prime arena for cut-price life insurance. That?s not to imply that...
Buying Life Insurance Online ? Is It A Really Good Idea?
Insurance > Buying Life Insurance Online ? Is It A Really Good Idea?
DIY Plumbing Repairs - You Have Homeowners Insurance, Use It!
DIY Plumbing Repairs - You Have Homeowners Insurance, Use It!
by: Ray Breitenbach
Since most home owners insurance policies don't cover the cost of repairs few people think to check with them when plumbing problems
occur. Although they may not cover the repair, they will usually cover the value of damaged property including cleaning up after the repair. The scope of this type of project is typically not a diy plumbing repair project so you will want to find any way you can to help pay for it.
A few years ago I had the misfortune of finding water seeping through a wall in my basement one spring. First this was blamed on a very wet season. Next, when dry weather came around and the leak was still there a basement waterproofing contractor was called in. It was no suprise when this contractor informed me that I had ground water and needed their expensive services. Since the company had a vested interest in me believing this they did not...
DIY Plumbing Repairs - You Have Homeowners Insurance, Use It!
Insurance > DIY Plumbing Repairs - You Have Homeowners Insurance, Use It!
Why Should I Even Bother To Buy A Life Insurance?
Why Should I Even Bother To Buy A Life Insurance?
by: Derek Gardner
Numerous economic experts believe life insurance to be the basis of sound economic planning. It is in general a cost-effective way to take care about your loved ones after you are departed. It can be an important instrument in many ways.
Income substitute
For the majority of people, their main financial asset is their capability to make a living. If you have people depending on you, then you need to think about what would happen to them if they suddenly do not have your income to count on. Income from a life insurance policy can help complement retirement income. This can be particularly useful if the benefits of your surviving other half or family partner will be reduced after you pass away.
Pay your debts
Think of life insurance so that your loved ones have the money to pay for the funeral, credit card debts unpaid and medical expenses not covered by health...
Why Should I Even Bother To Buy A Life Insurance?
Insurance > Why Should I Even Bother To Buy A Life Insurance?
Before You Look for Health Insurance
Before You Look for Health Insurance
by: Richard Keir
Shopping around for medical insurance can be a confusing business.
You need to keep your wits about you and keep track of the benefits and costs of each policy and each type of policy.
Too often we tend to look at the price first and the rest of the policy becomes a blur of fine print. And we're off to check the next policy.
Slow down. There some important things you should do before you start chasing around to get a policy. Doing these few things will make the whole process simpler and clearer - and you're much more likely to make a good decision.
You need to carefully consider your situation.
Think about these questions and note your answers:
What's the general state of your health?
How old are you?
Do you have any serious medical problems currently or in your medical history?
Do you have any history of recurring or on-going medical...
Before You Look for Health Insurance
Insurance > Before You Look for Health Insurance
Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
by: Rachel Lane
There are three main types of insurance cover you can buy to protect yourself and your family: life insurance, private medical insurance and critical illness insurance. If you want your financial health to be completely bionic then you could choose all three types of insurance, but if your family finances are more restricted, it might be better to insure yourself with critical illness insurance and life insurance. Critical illness insurance should not be confused with private medical insurance or even income protection insurance and it?s important that you do a full evaluation of your needs before you pursue the different insurance options.
The purpose of critical illness cover (CIC) is to fill a gap that is left by traditional life insurance policies, which will only provide a pay-out on the death of the policy holder. CIC provides a tax free lump...
Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
Insurance > Critical Illness Insurance And Life Insurance Cover For Better And For Worse.
Homeowners Insurance: Lessons from Katrina and other gulf storms.
Homeowners Insurance: Lessons from Katrina and other gulf storms.
by: Matt McWilliams
Homeowners Insurance is supposed to protect us in case of disasters. That is what we have come to expect from our homeowners insurance over the years. But what if the disaster is the costliest in U.S. History? What if your insurance agent?s home and office were destroyed in the disaster also?
That is what happened to many customers and homeowners insurance agents and companies after Katrina hit the Gulf coast. Many agents' homes, offices and insurance Companies' claims centers were in the same situation as their clients due to the storms. So what did they do? They set up ?office? in tents and mobile trailers. Then Hurricane Rita blew away these temporary offices and the agents and companies set them up again. These temporary shelters acted as a communications center for all people in the surrounding areas. Local people would come by to ask questions, meet with...
Homeowners Insurance: Lessons from Katrina and other gulf storms.
Insurance > Homeowners Insurance: Lessons from Katrina and other gulf storms.
Avoiding Disaster: Choosing the Right Auto Insurance Company
Avoiding Disaster: Choosing the Right Auto Insurance Company
by: Auto Insurance Spot
A great deal is at stake when choosing an auto insurance
carrier. In addition to the financial considerations,
there are issues such as reliability, quality of service,
and integrity. Luckily, there are certain steps you can
follow to ensure that you select an auto insurance company
that will meet your needs.
When choosing an insurance carrier, reputation carries a
great deal of weight. For instance, Allstate, Nationwide,
and State Farm are well-known companies that have managed
to hold onto some clients for years. For additional
guidance, you can consult your state's department of
insurance website. The website might offer consumer
complaint ratios which indicate exactly how many complaints
an auto insurance company has received for every 1,000
claims filed. This information can help you to better
evaluate companies...
Avoiding Disaster: Choosing the Right Auto Insurance Company
Insurance > Avoiding Disaster: Choosing the Right Auto Insurance Company
Insurance
This page loaded in 0.46308 seconds.