Rocio says: When is a storm a storm and a flood a flood? These are not riddles, but serious questions – the answers to which can have huge consequences for insurance customers whose properties have been damaged by these events.
Insurers with what we view as potentially unfair definitions of floods and storms – and in some cases, both – were not just niche operators but some of the largest players in the market.
Many of these insurers told Which? they believed that their definitions of these events were fair and in line with guidance from external bodies, including the Flood Re scheme, a joint initiative between the Government and insurers.
Think, for instance, of claims rejected on the basis that while your house was flooded, the water entered too slowly to constitute a flood. So, while it is unfortunate that your home is now damaged and the associated costs to repair it will be significant, you are not covered and so it’s tough luck.
When we surveyed more than 1,300 UK adults with buildings insurance, we found that two-thirds of them define a flood as an event where water enters and builds up in a home, regardless of speed.
Consumers’ expectations matter here not just because they’re common sense, but because they’re backed up by industry guidance.
Since releasing our research, Tesco has already pledged to review how it defines a flood. But more needs to be done. Which? wants the Financial Conduct Authority (FCA) to investigate whether all insurers are evidencing how they have met consumers’ reasonable expectations of definitions and addressing any issues they may identify with their products.
Rocio Concha is the director of policy and advocacy at which.co.uk. If you have a question for this column, email: business@theipaper.com
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