Commercial and Residential Flood Insurance

One in six properties in England (over 5 million properties) are at risk of flooding from rivers or the sea, with a further 2.8 million properties susceptible to surface water flooding.

Yet even with such a significant proportion of properties being located in at risk flood areas, 25% of flooding occurs in areas which were not previously perceived to be flood-prone.

Daines Kapp are recognised by the British Insurance Brokers Association (BIBA) as having experience in placing flood insurance for properties at high risk of flooding.

So, how do we source flood cover? Below we have listed a range of flood insurance facilities we access, beyond the traditional insurers.

Flood Re
Flood Re is the government backed flood reinsurance facility, through which insurers can reinsure the flood risk with the government. The scheme is restricted to residential properties and generally required to be owner occupied (buy to let properties are ineligible). Click here to see the full eligibility criteria. 

Flood Excess
For commercial and residential properties which have secured flood cover, but with a large policy excess (the part you must pay before a claim can be paid), Daines Kapp can provide flood excess insurance, for excesses as high as £100,000.

Historical Flooding
Where flooding has occurred at a commercial property over 5 years ago, some insurers will consider providing full cover, including full traditional flood cover. This is subject to the specific eligibility criteria of the insurer being satisfied (construction materials, occupancy, trade etc.)

SME Flood Insurance
For small businesses or commercial property owners located in high risk flood areas, or even those with previous flooding, Daines Kapp can provide coverage inclusive of an initial £50,000 flood limit. This is again subject to the specific eligibility criteria of the insurer being satisfied (construction materials, occupancy, trade etc.)

Parametric Insurance
For all properties other than household insurance, Parametric Insurance has emerged as a sophisticated solution to securing flood cover for all but the most extreme flood risk areas.

Ordinarily, when insurance is purchased, you are required to provide evidence of your loss, before this will be indemnified by the insurer. Parametric insurance works very differently, as you pre-agree with the insurer that if a specific set of circumstances occurs, you will be paid a pre-agreed amount, irrespective whether or not the circumstances have caused you any loss. In the context of flood insurance, a sensor is installed on an external wall the property, which appears like a piece of vertical guttering. As the policyholder, you chose that if a flood occurred, the flood water depth you would like to be paid pre-agreed amounts. Typically these will be calculated to cover your costs in the event of a claim. The lowest depths start at 20cm, so as an example, you may wish to be paid £10,000 at 20cm, and then an additional £50,000 at 40cm, and finally a further £200,000 at 80cm. The premium is calculated on the limit you wish to be paid and the depth you wish to be paid at, so you are able to increase the trigger depth in order to reduce the premium.

Corporate Flood Risk Analysis
For large corporate risks whereby flood cover is not being provided, or is being offered with adverse terms, Willis Towers Watson's Risk Management team can be engaged to carry out sophisticated technical flood mapping and exposure analysis. This report can then be used to liaise with insurers in securing appropriate flood coverage, and also in the reassessment of the sums insured required.

Summary
Regardless of your flood insurance requirements, Daines Kapp have a range of options at our disposal to give you the best chance of securing appropriate flood coverage. Please give us a call on 01920 484844 and speak to a member of our team.