Floods Recovery Minister John Healey after meeting the Association of British Insurers regarding the floods in 2007, said

“It was a very useful meeting where the ABI said that out of a total of at least 130,000 claims, by the end of August one in five of household claims had been settled and 10 per cent of business claims. While awaiting updated figures they expect this now to have reached around 25 per cent of households and 15 per cent for businesses”.

The quote was taken from a government web site.

The Minister is also quoted as saying, “”Over the last few months there have been a number of reports in the media about areas being blacklisted for flood related insurance cover and insurance renewals refused. The ABI today confirmed to us that no areas have been blacklisted, existing cover has not been withdrawn in any area and there is no evidence that policy renewals are being refused. I hope this will give households and businesses reassurance in the face of such reports. The Government will continue to work with the industry to ensure this remains the case.”

I suspect this worry in the media is related to a passage on the Department for Environment, Food and Rural Affairs (Defra)  website where it says:

“Flood cover will be available as a standard feature of household and small business policies for a) those properties defended to a minimum standard of 1 in 75 (in other words where the design standard of defences is such that the probability of the properties being flooded in any single year is 1.3% or less), or b) for those properties where such defences are scheduled for completion within the next five years. Premiums will continue to reflect different degrees of risk.”

Which to my way of thinking means that if you’re at risk of flooding 1 in every 60 years you’ll be refused cover.

In which case you most certainly need to have a proper recovery plan for your business or you’ll sink without trace!

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Immediate action based on your own plan if you’re in a flood prone areas is vital, those few minutes can save the day for a business and allow it to continue trading. Lack of planning can put you out of business and sometimes you won’t even know for weeks.

1. Use warnings to take action immediately and to co-ordinate items on an urgent to-do list which you’ve hopefully already prepared
2. Move all PC equipment, including printers and routers to the highest point that is feasible
3. Move all paperwork, such as current invoices and orders, up high, or off-site
4. Put all legal and insurance documents place in safe place not at risk from the floods, preferably in a safe place off-site
5. Un-plug all items such as phones and broadband where possible
6. Place items that can’t be moved higher on bricks or solid material
7. Roll-up any loose items such as curtains and carpets and if possible lay them across stacked bricks
8. If you’re staying on the premises prevent water build-up by opening doors on the downward slope. Other wise lock up as usual and sand bag all the entrances, including air bricks.
9. Get updated information by regularly checking the emergency numbers and listening to local radio
10. Make contact with those people important to your business and tell them what is happening.

Not only was I the victim of a double mains burst but also of a blocked mains drain, as you can see from the picture above.

So these types of disaster don’t just happen to those who live next to the coast, on a river bank or in the Norfolk Broads!

The British Insurance Brokers’ Association has a range of insurance-related tips that a business really needs to consider carefully. There are more equally important flood advice tips that I’ll give you in another post shortly.

1. Keep adequate insurance cover
2. Check whether to call your broker or insurer if disaster happens – most have help lines
3. If your property is not maintained properly, including gutters and flat roofs claims may be affected
4. Ensure you’ve the correct "Sums Insured" for your building and contents, otherwise your claim could be reduced
5. Keep pets and garden valuables inside
6. Check you’re getting a competitive excess which you afford to pay if a disaster happens
7. If your property is a high risk from flooding (check the Environment Agency Flood Map) talk to your broker for advice to reduce damage
8. Move as much as upstairs as you can when you hear a flood alert
9. Switch gas and electricity off and keep off until suppliers give the OK
10. Don’t drink the mains water as it may have been contaminated by sewage – keep off until supplier gives OK
11. Keep furniture away from walls to prevent further damage
12. Keep a copy of important telephone numbers and policy documents in a safe, waterproof and easy to find place
13. Call the 24 hour Environment Agency Floodline on 08459881188 for flooding information in your area
14. Get sandbags for doors and consider specialist defences such as air brick covers and window defences

When you see them listed down they seem obvious. However, when you’re under pressure and water is cascading down your street having a plan to execute saves you time and inevitably money too. Having been the victim of a double Manchester ring main burst a few years ago I speak with experience on what needs to be done when such a flood occurs.