Rising tithes: Dealing with premium increases
Insurers' view of flood risk is based on many factors. As the flood models change, prices go up and down accordingly. Recent Met Office data has consistently indicated the increasing frequency of extreme weather – which is factored into premiums.
Even if a property’s flood risk has not changed, premiums can still Increase. For example, increases to the sum insured can result in changes to the rating calculation.
The main reason for premium increases in flood insurance currently is the increased rebuild costs. The Royal Institute of Chartered Surveyors suggest that material costs may increase as much as 17.6% this year. Insurers need to consider these rising costs, as they will result in far higher claim values.
It can be useful to ask your FSB Insurance Service broker what the price would be without flood. Some Insurers may refuse unless there is a guarantee of flood cover in place – that's where FloodFlash comes in. Due to the simplicity of parametric insurance, a FloodFlash policy is often cheaper than a loaded premium from the primary insurer. Using FloodFlash to fill the exposure can save thousands of pounds.
Trigger happy: How FloodFlash smart quote is helping FSB Insurance Service support clients across the UK
Smart Quote is FloodFlash’s answer to the question: what if clients don’t know what triggers to pick? Smart Quote produces a suggested trigger setup and bespoke insights for every single client, based on their property’s characteristics.
The best thing about Smart Quote is that it will only get smarter. Over time machine-learning and AI capabilities will help FloodFlash’s Smart Quote learn about real business needs and translate that into more accurate calculations for brokers and clients. In other words, this is only the beginning.
2022 Commercial Risk Report: Key findings
This year, we are promoting the Commercial Risk Report in partnership with FloodFlash.
Here are some of the key findings:
Want to know about the flood risk to your business? Get in touch with an FSB Insurance Service broker who will work with FloodFlash to provide detailed insight on your risk.
Smart cover for any flood excess
FloodFlash is now available as excess cover. In many cases, it is the best option for businesses that might benefit from smart insurance. FloodFlash excess infill policies behave in the same way as regular FloodFlash policies. That means that you don’t need to claim on the main policy to claim on their FloodFlash policy.
You can also benefit from rapid claim payout. This can be helpful to deal with the immediate costs of flooding such as clean-up or finding alternative premises while you wait for the main claim to come in.
A final (and perhaps the biggest) advantage of FloodFlash compared to traditional excess products is the flexibility.
You can set their payout in any multiple of £5,000. This means that if you want to see what premiums look like with a higher excess, they can support you in partnership with the main insurer. In some cases, increasing the excess and covering the difference with FloodFlash can lead to a significant saving.
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