FloodFlash can be used for any commercial property. One of most common sectors is real estate and property management. Building repairs, refurbishment and the cost of alternative accommodation means the cost associated with a flood can quickly reach significant levels. Keep reading for an example of how we helped a residential management company deal with their rising premiums.
Rising premiums and limited solutions
Based in Reading, the client is a residential management business which manages a number of blocks of flats. After a rebuild assessment prompted significant increases in their sums insured, they were faced with limited options and unaffordable premiums. In fact, only one insurer was willing to provide cover including flood.
Excluding flood, the premium fell significantly, and more insurers were offering terms. However, the management company still wanted protection in the event of a flood.
The FloodFlash solution: multi-trigger savings
Traditional insurers consider the full sums insured of a property, meaning that when the sums insured rises, the premium will rise too. However, using this to dictate the premium doesn’t take into account the reality of a how a flood may impact a property. Combined with the speed of a parametric claim, many FloodFlash clients opt for a far lower payout than their total sums insured.
The client chose a multi-trigger policy to reflect the impact that different levels of flooding would have on their property. They opted for the following depths and payouts for each property:
- £5k at 0.2m
- £25k at 0.5m
- £100k at 1m
With no accommodation on the ground floor and a step leading to the entrance, the client chose a low payout to cover clean-up associated with a low level flood. The second and third payouts were higher, accounting for the added costs of a more significant level of flooding, including full refurbishment, lift maintenance and alternative accommodation for residents.
The outcome
By excluding flood, their broker gave the client several more options of cover, and saved them over 30% on their total premium. It’s a great example of how FloodFlash can be adapted to fit your clients’ exact needs.
To see case studies and use cases from more sectors, download our UK case study doc here. Want more FloodFlash insights? Sign up to our newsletter or follow us on LinkedIn for the latest news.