Businesses and landlords, meet the new force in flood insurance
Control your costs and your recovery with event-based insurance from FloodFlash
What do you do when your business floods 3 times within 10 years? When premiums are forced up to unaffordable levels with a massive excess? Or even when your insurer can’t give you cover due to recent flooding? These are the types of challenge that John Tittensor, general manager of The Breighton Ferry, faced earlier this year.
The problem for many businesses on floodplains is whilst they need flood insurance the most, the market is not providing for them. In fact, 52% of small businesses in floodplains don’t have any form of flood insurance, facing a risk that could prove ruinous.
Statistics like these make it clear that the insurance industry has struggled to find affordable ways to serve areas with a higher risk of flooding. This leaves many people like John asking how to find flood cover that doesn’t break the bank. Businesses like his no longer need insurance to replace their inventory or repair damage, they need a financial guarantee to survive.
Two catastrophe insurance experts called Adam and Ian think they’ve found the answer, and it’s simpler than you might think. Parametric, or “event-based” insurance provides a settlement based on an event happening, rather than the damage incurred. Event-based insurance like this uses agreed limits (or parameters, hence parametric) – when these limits are reached the settlement is paid out. That’s when the pair set up FloodFlash.
FloodFlash base their insurance on state of the art sensors that are installed outside the insured property. When the sensors detect a flood, they send the data to FloodFlash HQ and the payout is arranged. You don’t need loss adjustors to come round and assess the damage, so there are no long delays. You also receive the full payout amount agreed in your policy, so there’s no guesswork or haggling when it comes to payout time. All this adds up to businesses like The Breighton Ferry now having access to the cover they need. And when disaster strikes they can recover from catastrophic flooding on their terms.
FloodFlash is a registered coverholder at Lloyd’s of London and is authorised and regulated by the Financial Conduct Authority. For more information or to request a quote, visit floodflash.co, or email@example.com
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