Think before you sign -
Healey issues flood insurance warning to people in Severn, Avon and
Thames Valleys
COMMUNITIES AND LOCAL
GOVERNMENT News Release (146) issued by The Government News Network
on 2 August 2007
Floods Recovery
Minister John Healey today urged people in communities hit by the
July floods to seek free and impartial insurance advice before
signing up with third parties who offer to help settle insurance claims.
The July floods affected people particularly along the rivers
Severn, Avon and Thames.
Publishing information setting out how people can access free
insurance advice he warned that accepting help from third parties
could mean people are left short of the money they need to fully
repair their damaged homes and replace prized possessions.
His advice includes:
* You can make a claim directly and free of charge direct to your
insurer
* You don't need to pay a
'middleman'
* If you choose to accept help from
third parties check they are regulated by the Financial Services
Authority
* Free, independent advice is available from your
local Citizen's Advice Service
Having visited a number of affected areas John Healey's top
priority is for life in communities to get back to normal as
quickly as possible. Key to this is people being able to repair
their homes and replace their possessions at the earliest
opportunity. So access to free insurance advice is essential. He
has met with the insurance industry and heard how they are putting
extra resources into speeding up the claims process.
Flood Recovery Minister John Healey MP said:
"I've visited a number of communities affected by the
floods and have spoken with people whose homes have been damaged
and have lost much of their belongings. I know a lot of people are
very upset and feel vulnerable at this difficult time.
"That's why our top priority is for life to return to
normal as quickly as possible. I have been working with the
insurance industry to ensure that claims are being dealt with
swiftly so people can start making repairs to their homes and
replace possessions.
"It is important people know where to access free and
impartial advice so I'm arranging for practical information
to be made available in flood affected communities.
"So there is no need to use a 'middleman' who
might offer to settle claims in return for a cut of the payout.
But where people choose to do this it is important they understand
this could leave them short of the money they need to fully repair
their damaged homes and replace prized possessions.
"My message is clear - if in doubt speak to the Financial
Services Authority, Association of British Insurers or the
Citizen's Advice Service. They are there to help."
£46million of support has been announced for flood-hit areas and
on top of that local authorities have the special Bellwin scheme
to help compensate them for their costs. The Government is
working with local authorities so money can be released to help
those most in need as quickly as possible. Specialist central
government officials from areas including transport, schools and
housing are also working with authorities to get a clear
assessment of the costs and consequences of the floods so further
targeted help can follow.
Notes to Editors
1. The information published today will be made available via
Government Offices and local authorities in flood-affected areas.
2. The text of the information is set out below.
Insurance Advice
Following the recent floods have you been approached by someone
offering to help you fill out your insurance claim?
Before accepting such an offer you should know that:
* You can make a claim directly and free of charge from your insurer
* A third party may take a cut of any payout
* If you choose to accept help from a third party check they are
regulated by the Financial Services Authority or are an exempt
professional firm such as a law firm
* Free, independent advice is available from your local
Citizen's Advice Service
This note is designed to give advice to those households in flood
damaged areas who are intending to claim on their insurance
policies and to let you know that you can make a claim directly
and free of charge to your insurer. Insurers are regulated by the
Financial Services Authority (FSA) and they have to handle your
claim fairly.
Following the recent flooding you may be approached by
individuals or companies who offer you help in progressing your
insurance claims (for example, by offering to notify your claim to
the insurer or to negotiate it on your behalf).
Recent advice from the FSA, endorsed by the Association of
British Insurers (ABI) recommends that you think carefully about
whether you want to hire a third party's help.
The ABI have reported that
"the insurance industry has mobilised staff and contractors
from around the country to meet the enormous challenge the
widespread flooding has brought. We are working with the
Government and local authorities to put families, businesses and
communities back to normal as quickly as possible."
If however you do decide you want to hire a third party to help
you progress your insurance claim, make sure you check how much it
will cost you first as they may charge a share of any sum paid out
by the insurer. This may leave you short of the money you will
need to repair damage and replace possessions.
Before accepting the help of individuals or companies who will
expect payment in return for their service you should also check
that they are regulated by the Financial Services Authority (see
their Register at http://www.fsa.gov.uk/register/home.do)
or are an exempt professional firm such as a law firm (see the
Exempt Professional Firm (EPR) section of the FSA Register).
Where to go for help
National Advice
The Financial Services Authority (FSA) is an independent body
that regulates the financial services industry in the UK. As well
as regulating most types of financial services firms, one of their
main aims is to protect customers of financial services, including insurance.
The Financial Services Consumer Contact Centre can answer general
enquiries about financial products and services. They can also
tell you if a firm is authorised and point you in the right
direction if you don't know who to contact.
You can contact them by calling their Consumer Helpline (call
rates may vary):
* 0845 606 1234
* Minicom/textphone - 0845 730 0104
Opening hours are between
8am and 6pm Monday to Friday.
The Association of British Insurers (ABI) http://www.abi.org.uk/ has a
useful list of questions and answers about flooding and insurance
on their website.
Local Advice
Free, independent and confidential advice on financial matters
such as progressing insurance claims is available from your local
Citizen's Advice service. Advice is available face-to-face
and by telephone.
To find your local Citizens Advice Bureau and to get details such
as opening times, phone numbers, information about access to the
bureau and other languages available in addition to English go to
http://www.citizensadvice.org.uk/index/getadvice.htm
or phone 020 7833 2181.
Useful Sources of Information
For factsheets on
insurance
ABI Information Zone
http://www.abi.org.uk
For insurance guides and Find a Broker service
British
Insurance Brokers Association (BIBA)
http://www.biba.org.uk
Consumer Helpline - 0901 814 0015
For an insurance broker
who is an IIB member
The Institute of Insurance Brokers (IIB)
http://www.iib-uk.com
For guidance on making a claim for compensation
The Claiming
Compensation guidance leaflet
http://www.advicenow.org.uk/compensation/
OR Dedicated Claims Regulation site
http://www.claimsregulation.gov.uk/publications.aspx
Dedicated telephone number - 0845 4506858.
Public Enquiries: 020 7944 4400;
Email:
press.office@communities.gsi.gov.uk
News Releases: http://www.communities.gov.uk