INSURANCE company bosses have been accused of playing “fast and loose” with people’s lives to avoid flooding pay-outs.

A Sunday Post probe has revealed hundreds of families left devastated by last winter’s floods face financial ruin because of alleged cheap tactics used by their insurers.

Many of those affected believed they had valid policies with reputable companies but have since been told they won’t receive a penny in compensation.

 

Disturbing examples of home owners being left stranded include:

• Insurers hiding behind obscure small print and invoking little-known conditions to avoid paying out.
• Policies being voided because answers given in good faith on price comparison websites were deemed to be inaccurate.
• Insurers insisting storms were not to blame for the floods to avoid paying weather-related claims.
• Offering payouts tens of thousands below the true cost of repairing the damage.

Paul Hendy, director of charity Scottish Floods Forum, said: “People are facing bills of anywhere between £30,000 and £60,000, money they just haven’t got.

“They are in a catastrophic dilemma and some admit to being suicidal. It really was the last straw after all they’ve been through.”

Thousands of homes across the UK had to be evacuated this winter as storms Desmond and Frank brought some of the wettest conditions since records began.

A report commissioned by PwC estimated the cost to the UK at up to £2.8 billion. Around £700 million of that was in Scotland.

The deluge left a trail of devastation with Ballater in Aberdeenshire and Hawick, Roxburghshire, hardest hit.

South of the Border, Cumbria, Lancashire and Yorkshire were all badly affected, with Carlisle, Appleby, Keswick and Cockermouth experiencing mass evacuations.

However, the struggle for many of those affected has continued on long after the flood waters receded.

Mr Hendy added: “Some companies had voided policies where people have mistakenly said they were not within 400 metres of a water course.

“It is not fair to put this burden on the householder. The companies have the technology to answer this question with a click of a keyboard.”

It’s estimated 200 families affected by the insurance traps live in Scotland, with another 120 in north-west England.

Loss assessor Joel Zimelstern, of website TheRightClaim.com, said: “I have no doubt there are firms playing fast and loose with the rules. I represent people right across the country who have been caught up in this. It might be a minority who are affected but it’s significant for every one of them.

“If something has been marginal, some firms have erred on the side of their shareholders rather than for the benefit of the policy holder.

“The Financial Conduct Authority requires insurers treat customers fairly and they can not unreasonably void a claim.

“I believe in many cases they are not doing that.”

Mr Zimelstern, who has taken on insurance companies on behalf of his clients for 28 years, says the impact on families can be long-lasting.

He added: “I visited a woman recently who had suffered mental health issues as a result of the problems she had faced.

“The stress had pushed her to the point that she doesn’t know who to trust any more. Even when cases are settled the scars still remain for a lot of families.

“Don’t forget, if your insurance is voided you could be in breach of the terms of your mortgage.”

This weekend Ballater Caravan Park will partially reopen for the first time since Storm Frank blew through leaving a trail of devastation last December.

While the popular tourist facility on the banks of the Dee has undergone a remarkable renovation, the immense damage caused is still clear to see.

Just a few of the town’s shops have reopened and the majority of 307 homes that had to be evacuated remain empty.

Local councillor Geva Blackett insists Ballater is open for business, but added the some constituents had been “treated appallingly” by their insurance companies.

She said: “I do fear for the future, there are a number of issues still to be resolved.

“You need insurance to satisfy your mortgage lender, but will home owners be able to get insurance?

“People lost their homes and possessions and thought they were insured.

“To be treated like this is extremely unfair. They have been badly let down.”

Family left in limbo

Jan and Oliver Warnes are no nearer having their house fixed than they were when it was flooded on December 5.

They were fully insured but ever since they have been trying to get a proper plan for the restoration of their dream period home.

“Five months on our insurers are still arguing and treating us unfairly,” claims NHS clinical psychologist Jan, 34, whose period Victorian home in Warwick Road, Carlisle, was destroyed.

“It has been awful. Before Christmas I was very low. I was at the very edge.

“We were traumatised.”

The two-and-a-half feet of foul water that inundated their home means floorboards, plaster and all the fittings have to be replaced.

They thought local traders could do the work and they have had estimates ranging from £75,000 to £85,000.

But their insurer has insisted on referring all queries to a loss adjuster.

“The policy small print said they could appoint their own builders. They offered us just £20,000 cash, take it or leave it, in a bullying, aggressive way.”

Accused of lying

Pensioner Mary Richardson claims she is suffering health problems as a result of a stressful claim.

Mary, 83, whose home was damaged in the recent storms, is struggling to sleep at night and has palpitations, not because of the floods but because she has been accused of lying to her insurers.

She has not received a penny since the floods hit her four-bedroom semi-detached in Carlisle.

“At first I was told I was due an insurance pay out,” she said.

“Then they said they weren’t paying out as I hadn’t told them I lived beside a river.

“I didn’t tell the brokers, because they never asked.”

She has complained to the Financial Services Ombudsman.

The body has said she should get compensation.

However, she is yet to receive a penny.

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Has your insurer let you down or were you hit by the floods? Call 0141 567 2710 or email grmckendry@sundaypost.com

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Hidden Past

JONNY FORSYTH and his family have had to live upstairs in their house in Broad Street, Carlisle, for months while the ground floor dries.

He had to throw out carpets, furniture and floor-boards as the two feet of water that inundated the whole house was fouled by sewage.

“We grabbed everything we could carry and escaped upstairs,” he said.

He, his wife and four children have had to share the upstairs rooms while fighting for the cash to repair downstairs.

“I thought I was covered by insurance but after four or five days the insurance company invoked an exception because they said we had been flooded before, but we hadn’t.

“Apparently before we moved in, 10 years ago, water had got into the garage during the 2005 floods.

“But the neighbours all told me the houses didn’t flood.

“If you are asked if your house has been flooded, you think they mean the house, not your garage or an outhouse or a field.

“There are about 10 houses hereabouts that have all been affected by the same ruling,” the fed up dad told The Sunday Post.

New life ruined

 

ELAINE RENNIE claims insurers are using a weather loophole to avoid paying out.

She and her family waited years to own a caravan in Ballater.

Last autumn the mum of three forked out £21,000 for their dream holiday home.

Six weeks later Storm Frank hit. She and husband Graeme, 51, lost everything.

But 48-year-old feels utterly “let down” by insurers.

She claims they told her “flooding caused the damage and not Storm Frank” meaning she was not entitled to a pay out.

“The way we’ve been treated has been appalling,” she said.

“They just stopped taking my calls and were ignoring me.”

Elaine said when the storm struck it washed a huge part of her life away.

“We’ve lost a part of our life we all loved,” she added.”I feel let down.”

Left with nothing

DOROTHY LOWRIE’S home in Carlisle was saturated with three feet of water following Storm Desmond.

The 61-year-old sales assistant managed to rescue some of her possessions by moving them upstairs in her house.

But despite her efforts Dorothy was left with more than £63,000 worth of damage.

At first everything went smoothly with the insurer and loss adjuster. She was even advanced some money.

However, at the beginning of February everything turned sour and the insurer voided her policy.

Dorothy said: “They said I had answered a question incorrectly when I had taken the policy out.

“The actual question asked on the application was ‘Are there signs of flooding?’

“To which I said no. It’s very different from has your property been flooded.

“The company have said I can keep the £6,000 they advanced me as a gesture of goodwill because they could claim it back.

“I’ve gone from one day thinking I was covered to the next having nothing.

“It’s an awful blow when you are dealing the aftermath and trying to get back on your feet.”

I’m disgusted

BOB CRAIGEN bought his static caravan in Ballater to enjoy a long and happy retirement with his wife Rosaline.

Sadly just six months later, aged 68, Rosaline died after suffering complications following a stroke.

The pair, from Aberdeen, spent many happy days in Ballater and the 73-year-old decided to keep the caravan on and continued to visit regularly.

When Storm Frank hit, huge volumes of water rushed on to the caravan park from the nearby golf course bringing with it destruction and devastation.

Bob’s £32,000 caravan was swept away along with all the possessions inside it.

“I lost a lot of photographs and keepsakes of my wife,” he said. “It’s all gone now.”

Bob’s insurers refused to honour his claim, insisting he wasn’t covered for flood damage. “It’s disgusting the way I have been treated,” he said.

Insurers defend handling of claims

DESPITE the volume of criticism, the insurance industry has defended its handling of claims.

Sarah Cordey, of the Association of British Insurers, said: “Being flooded is horribly traumatic for all those affected, not only because of the flood itself but because the clear-up and recovery process can be so prolonged.

“Insurers’ priority is to do all they can to get customers back into their homes as quickly as possible.

“Of the 15,000 claims for property damage in the wake of December’s storms, 82% have been either fully or partly settled.

“When buying insurance, it is important to not only consider the price but also the product that you are buying so that if the worst does happen you have the cover you want.

“It is also crucial to provide all the information you are asked for as accurately as possible.”

Meanwhile, a spokeswoman for Financial Ombudsman Service also said they fully recognised the impact flooding can have.

A spokeswoman added: “As these incidents have increased in regularity, it’s been positive to see the insurance industry recognising the impact of flooding on their customers.

“That’s why many insurance claims for flooding are resolved without the need for the ombudsman.”

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