Home Insurance Will be a Struggle for Natural Disaster Victims

Gerry Tyack is no stranger to a challenge. He served'Most homeowners received an immediate response,
with the Royal Air Force in the Second World War,though some tried for several days to reach their
having lied about his age to join up as a 16-year-old ininsurer before being able to make contact. The timing
1939. After working as a fitter on Wellington bombers,of visits from loss adjusters was also crucial... many
he joined a mobile radar unit driving deep into Germanyreceived visits very quickly while others were forced
to pinpoint bomber targets.to wait due to a lack of available loss adjusters.'
More recently, Gerry combined a career as a garagePitt says home insurance companies must adopt
owner with a weekend passion for motor racing. In thecommon standards in assessing flood claims so
Sixties and Seventies he set international hill-climb andhouseholders can get on with clearing out wet and
sprint records in a series of Porsche, BMW androtting items without waiting for a visit from an
Brabham cars.adjuster.
But Gerry's latest challenge has been coping with theSimon Black, head of flood mapping at Norwich Union,
aftermath of last summer's flooding. His Cotswoldsays: 'A flood claim isn't like any other claim that we
stone home in the town of Moreton-in-Marsh,deal with. Homeowners have to live with the aftermath
Gloucestershire, was badly affected as 18 inches offor months on end.
water swept through the ground floor.'We have learnt lessons on how we communicate
The water also flooded into the Wellington Aviationwith customers. When someone is going to be out of
Museum that Gerry, 84, founded in former schooltheir home for months, sitting down to discuss
rooms adjoining his home in 1990 as a tribute to therebuilding one week after the shock of a flood is
RAF personnel who trained at the wartime air base indifficult. It may be better to let someone settle in
Moreton-in-Marsh.alternative accommodation, then a month later start
Unique books, documents and pictures were ruined.planning for the future.'
Gerry says: 'The water turned these records into anMany of those who were flooded now face increased
unidentifiable pulp.'excesses - the amount they have to pay towards the
Fortunately, the building itself was almost unscathed.cost of any future flood claims. Black says: 'We have
Gerry says: 'I had every reason to close the museumhad to look at £5,000 excesses where someone
for good after the floods, but something kept mehas a big house and lots of assets to protect.'
going.' After some disinfecting and cleaning, theNU has increased household premiums by about 10%
museum was open again within a fortnight.since last summer, though it says this is not only
But repairing Gerry's house took longer. Plaster had tobecause of floods. For flood victims unhappy with the
be stripped off the walls, warped floors needed to bedeal being offered by their insurer or the claims service
ripped up and the kitchen required a complete rebuild.they experienced last year, getting another quote is
Gerry parked a caravan in his garden to act as anot easy.
sitting room and kitchen while the repairs were underThe comparison website recently analysed quotes for
way. His insurer, NFU Mutual, paid £60,000 to restorehigh-risk postcodes across the UK. It found that in
the property and to replace damaged contents. Thecases where a property had been flooded within the
final recarpeting and redecoration was not completedpast year, on average only three out of a total of 60
until May.insurers were willing to quote.
Gerry's story is one among many of the lives turnedThe huge losses have also raised questions over
upside down by the flooding. More than 130,000 homeswhether insurers can continue to provide universal
and 30,000 businesses were flooded and 20,000cover against floods. Under an agreement between
vehicles were damaged.insurers and the Government, insurance companies
Insurers will end up paying more than £3bn to settlepromise to offer flood cover to all homes where the
claims. Uninsured losses total up to £2bn. Even now,risk of flooding is less than once every 75 years and
thousands of families are living in temporary housing orto those in higher-risk areas where flood defences are
caravans. The scale of the floods represented a hugeplanned.
challenge for insurers and loss adjusters. SomeIn return, insurers asked the Government to boost
managed to handle claims efficiently while othersflood defence spending and to change planning laws
struggled.to stop building on flood plains. Insurers are reviewing
Government adviser Sir Michael Pitt wasthe agreement and there is a chance that some
commissioned last year to report on the lessons fromhomes may be left without cover.
the flooding. His final findings are expected at the endBlack says: 'Newly built properties in high-risk areas will
of the month but his interim report says: 'There werebecome increasingly hard to insure unless they are built
highly variable experiences of insurers' responsiveness.with flood resilience measures in mind.