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Independent financial advice - are you insured against the elements?

Take independent financial advice to make sure you're insured against the elements

Freak weather cover

There are around 30 incidents of tornados in the UK each year and if you are unlucky enough to be in the path of a twister, are you covered? If you have taken independent financial advice and have a mortgage, you'll be required by the lender to have buildings insurance, and this is the policy that will pay out if your home suffered structural damage due to freak weather. Freak weather is covered as a matter of course, but damage to external features such as fences may not be included.

What if I am a victim?

If you are a victim of a freak weather incident, your insurers will usually pay for alternative accommodation while repairs are undertaken. However you must check with your insurer that they agree that your home is uninhabitable before you move out. Get independent financial advice on your buildings insurance when you arrange your mortgage, because you need to ensure that the insurer will pay out for temporary repairs to prevent damage from getting worse.

Acts of God

Although the words sound impressive, the phrase Acts of God occurs in practically all insurance policy forms. This insurance covers events arising out of natural causes with no human intervention which could not have been prevented by reasonable care or foresight. These are generally natural events such as floods but are so out of the ordinary that no one could reasonably expect them.

Acts of God could include :

  • Unusual weather factors - tropical storms, floods even droughts
  • Unusual geological phenomenon - volcanoes, earthquakes, tidal waves etc.
  • Unusual hazards - meteor damage, plagues of insects etc.

If an insurer perceives that damage is caused by an "Act of God" they do not have to pay. Needless to say there have been a large number of court cases where claimants and insurers have argued over what can reasonably be foreseen and what can not. Often it depends on the particular circumstances.

When taking independent financial advice about your mortgage, you should also speak to your insurer and try to reach an agreement about what is reasonable to expect and what is unforeseen.

Floods

Each year we see news reports of flooding, sometimes due to extremely freak weather conditions such as was the case in Boscastle in 2004. Heavy storm caused two inches of rain to fall in two hours, and although this may not sound dramatic, seven helicopters were needed to rescue local residents. Someone taking independent financial advice could not have foreseen this disaster, whereas some areas are prone to flooding and insurance premiums will be particularly high (if insurance is available) in these areas.

You can have a brighter financial future. If you would like independent financial advice about buildings insurance with your mortgage call our experienced advisers today on 01424 777 156 or e-mail mike.robertson@mraltd.com