Withdrawn Licence Means Cancelled Flood Payout

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All over the country, flood hit homeowners are going through the process of claiming on their buildings insurance for damage to their property. In the vast majority of cases the claims are processed without delay, so that people can start to get their lives back to normal. In a few cases though, homeowners have been in for a nasty surprise when they find their claims are swiftly rejected.NEWS

Operating Licence

All insurance companies operating in the UK, whether they are based here or not, have to have a licence to underwrite insurance policies. As with any other market sector, insurance companies go out of business from time to time, and if the insurance authorities think that the company does not have enough cash to meet its obligations, they will take away their licence. If a claim is then made on the policy, it will be refused. In the case of one flooding victim, the company she had her policy with was based in Iceland, and the well-publicised financial turmoil there had led to the company’s closure.

Dealing With the Good Guys

Sometimes when you buy cover, you deal directly with the company involved and know exactly who your policy is lodged with. Many of us are constantly on the lookout for the cheapest policy, and this can involve buying through a broker. Ensure you are crystal clear about who exactly your policy will be with, and if you don’t recognise the company name, do a little research online to see what other customers are saying about them. It’s a fine line between getting a good price for your policy, and being landed with something that won’t pay out when you really need it.

Policy Expert
Our dedicated customer service team is always on hand to help – either online or over the phone. Whether you want assistance in finding the right policy or even handling a claim, we make sure it’s all handled by experts. For more information speak to one of our experts on 0203 014 9300 or email ask@policyexpert.co.uk

The views expressed here are solely those of the author and do not necessarily reflect the views of Policy Expert.