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Scots left exposed to the ‘nightmare’ of floods without insurance

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New research from Citizens Advice Scotland has revealed that Scots living in flood-risk areas are often unable to get affordable insurance protection for their homes and businesses.

With flood incidents increasing, the charity’s new report, published today, shows that some insurers are refusing to cover people in flood-risk areas, making it harder for vulnerable Scots to protect themselves. This despite government efforts to make it easier through the FLOOD RE scheme.

CAB surveyed 178 Scottish households, two-thirds of which are in areas officially defined as ‘high flood risk’.

  • 1 in 5 of those who had been flooded in the past said they had considered going without insurance because the cost of premiums was unaffordable to them;

  • 70% of consumers did shop around at time of renewal but only 42% of them switched (indicating an absence of value-for-money offers);

  • Those paying most, or those who have made a previous claim, were least likely to switch;

  • Only one respondent had been provided with a discount from their insurer for installing flood prevention measures or signing up to a flood alerts service;

  • The majority of respondents paid less than £400 in premiums. But this rises to £600 for almost half of those who have been previously flooded, and up to £4,000 for some;

  • 40% of respondents had an excess of less than £200. This falls to 31% for those who have been flooded in the past and 18% for those who have previously made a claim;

  • Some respondents were unhappy with the way they had been treated by the insurance companies, and reported a lack of co-ordinated support from the agencies that are supposed to help flood victims.

    • Fraser Sutherland
    Fraser Sutherland

    Publishing the full CAS report, Bailed Out, today, CAS Consumer spokesman Fraser Sutherland said: “Unless it has happened to you, you really can’t know what a nightmare it is to have your home flooded. The responses to our survey from those who have been affected are heart-breaking as they describe the utter devastation that such events bring.

    “Over the last few years many of those hit by floods have come to their local CAB for help. So we already had a bank of evidence showing the sort of practical issues that people face in the aftermath of a flood, and this evidence showed that getting insurance was a serious problem. So we have now added to that evidence with this new survey, which has revealed a disappointing picture.

    “The UK government worked with insurers to launch a new scheme – FLOOD RE – earlier this year, which aims to help people get affordable cover for floods. However, our research shows that many Scots are struggling to get their home insured after being flooded, due to high premiums, a lack of transparency, and insurance companies who are either not signed up to the FLOOD RE scheme, or don’t make this available to their customers.

    “This is simply not good enough. With autumn and winter on the way, who knows which town or village will be this year’s flooded area?

    “In publishing this report, we are calling on all Scots to ensure that their home and contents insurance policies cover them for flood damage. We are also calling on both governments and all 32 Councils to co-ordinate strategies to prevent floods, and to help people recover when they do happen. And we are urging the insurance companies to raise their game and support consumers in flood-risk areas to ensure they have adequate cover.”

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