Flood damage

What we look at

• Defining what a flood is

  If an insurance policy doesn't define "a flood", then it's likely we'll need to consider and decide whether a flood occurred.

  Floods often happen suddenly, particularly when caused by a natural event such as a river bursting its bank or during heavy rainfall. But that's not the only situation in which flooding can occur. A flood doesn't have to be a sudden or violent event. It can occur when water enters (or builds up) in a property slowly and steadily, and this doesn't necessarily have to be caused by a natural event. The key factor is that water built up, regardless of where the water came from. 

  Flood damage can also be caused by flooding outside the property. For example, if the property is surrounded by floodwater which leads to the walls becoming damp, we're likely to say that consumer has a valid flood claim, if the damp has caused damage to the property. 

  Similarly, we might say that damage has been caused by flood even if the water itself hasn't damaged the property. For example, if floodwater washes away enough earth to make a building unstable, we're likely to say that damage to the building was caused by the flood.

  Where damage is caused by a build-up of water which has escaped from a pipe or domestic appliance, there may also be cover under the "escape of water" section of the policy. 

• Waterproofing rooms below ground level ("Tanking")

  Tanking is a heavy-duty form of waterproofing often used in buildings with rooms below ground level, or in areas with a particularly high water table. 

  We see cases where there's a dispute about whether tanking is needed, and also sometimes see cases where the insurer has said that the reason the property is no longer waterproof is because the tanking has failed due to lack of maintenance. 

  If it's clear that any repair carried out would only be temporary and likely to fail in the short term if tanking isn't installed, we may ask the insurer to install tanking. For example, if we are satisfied that an "un-tanked" room was watertight before, but it's flooded due to a rise in the water table.

  If the insurer says that tanking failed because of a "gradually operating cause" and damage caused gradually is excluded by the policy, we'll decide on balance how the damage is more likely to have occurred, and if it's fair not to pay the claim on this basis. 

• Repairs

  We sometimes see cases where the insurer argues that the property wasn't waterproof before the damage, so making the property watertight wouldn't be covered by the policy. This is sometimes called "betterment". 

  Your insurance policy is intended to put you back into the position you would have been before the damage happened, and although this is often on a "new for old" basis, we don't expect your insurer to put you into a better position than before or include any preventative protection on your property that you didn't have previously. However, any repairs that your insurer makes should be effective and lasting.

  If we think that your property is at a significant risk of flooding again if preventative measures aren't put in place, we might say that repairs without preventative measures would require more work after a short period of time, or on a regular basis. In this case, we may ask the insurer to repair more than just the insured damage, by adding preventative measures. 

  We also see some cases where it isn't reasonable to decide if an insurer's proposed method of repair is effective, until it has been carried out and tested. In such circumstances, we may decide it's reasonable for an insurer to attempt its preferred method of repair. However, should it not succeed, we would expect the insurer to put matters right. 

• Allowances for temporary accommodation or disturbance

  Whilst repairs are carried out, it may not be safe to stay at your property, or there may not be access to essential amenities, so you'll need to move into alternative accommodation. Many policies will cover the reasonable extra costs of temporarily living somewhere else because of damage to your property caused by a flood.

  When we look at these types of complaints, we'll look at the accommodation you were offered and if it was suitable for your needs, and if any additional costs incurred were reasonable and in proportion to your claim. We'll consider things like: 

  • when your property was considered unsuitable for you to live in
  • how long is reasonable for your insurer to cover these costs
  • what your policy says about alternate accommodation, and if there are any limits
  • if you incurred any additional expenses because of the alternate accommodation

  Generally, we'd expect these costs to be covered until the property becomes habitable or safe again subject to the limit in the policy, which could be part way through the repairs. If you need to relocate for a few days or a week, it might be reasonable to stay in a B&B or hotel. But if it's likely to be for a longer period of time, it may be better to relocate to private rental accommodation or serviced apartment. If the options for alternative accommodation near to you are limited, we'd expect your insurer to work with you to find a reasonable solution or compromise.

  When finding alternative accommodation, we'd expect insurers to consider things like:   

  • the distance from work and school
  • the distance from family and friends
  • the number of bedrooms
  • disabilities or medical conditions
  • pet-friendly properties, if you have pets

  Disturbance allowance

  There may be other extra costs incurred whether you stay at home or have to relocate temporarily. In insurance policies this is sometimes referred to as a "disturbance allowance".  

  This only refers to monetary costs incurred, and won't include the inconvenience to you living somewhere else.  

  We'll consider what's fair and reasonable in the circumstances of your claim, but reasonable extra costs may include things like: 

  • extra food expenses, such as buying ready meals or eating out
  • laundry fees if washing facilities aren't available
  • additional travel expenses, such as taking children to school or commuting to work
  • rehousing pets if the alternate accommodation isn't pet-friendly
  • additional council tax if living at a different property (your local authority may agree to freeze the council tax at your insured property if it's going to be unoccupied for an extended period)