The home insurance wording you need to check or risk flood claim rejected

Unfair definitions of floods are being used in almost a third of policies, according to Which?

Some of the unfair small print excludes gradual, slow and steady entry of water into or outside a building, instead specifying water must enter suddenly or rapidly.

Wording is also unfair, Which? says, if it excludes water ingress from external certain sources, for example because of non-natural events such as a burst water main.

But after looking at 133 insurance policies sold by 67 firms, it found 32% of policies included unfair wording.

And for storms, 20% of policies included unfair definitions, such as by specifying a single type of weather must be involved, such as high winds. Some policies even exclude certain types of weather on its own, such as rain, hail, high wind or snow, either explicitly or by omission.

Which? is demanding the Financial Conduct Authority (FCA) investigates whether insurance providers' definitions of floods and storms comply with the Consumer Duty - an FCA initiative that sets high customer standards for insurers.

Your rights

The Financial Ombudsman Service (FOS), which deals with complaints against financial institutions, said: "Storms and floods can wreak havoc on your property, and it can be overwhelming to deal with the damage caused.

"During these difficult times, we expect insurers to treat consumers fairly and settle claims promptly.

"If a consumer feels unhappy with the service provided by their insurer, they should firstly raise an official complaint with the firm about the issue.

"If it hasn't been resolved to their satisfaction or they don't feel they've been treated fairly, they should contact our free, independent service and we'll see if we can help. Getting a fair answer is free and easy."

Flood risk home insurance

A flood risk area is a location that has a higher chance of flooding due to factors like proximity to rivers, the sea, or surface water run-off. Home insurance providers assess flood risk using several data sources, including Environment Agency flood maps, postcodes, historical flood claims, and local geography.

Properties near water or in low-lying areas are more likely to be flagged as high risk.

Homeowners can check their flood risk using the free Environment Agency flood risk checker or local authority data. This can help you understand the type and level of flood threat in your area — whether it’s from rivers, surface water or coastal sources.

Flood risk can significantly affect the cost of your home insurance.

You may face higher premiums, a larger excess for flood claims, or in some cases, exclusions where flood cover is removed entirely.

Getting insurance can be more difficult if your property has a history of flooding or lies in a high-risk zone. In these cases, some mainstream insurers might refuse cover, meaning you’ll need to look at specialist brokers or schemes like Flood Re to get protected.

Does home insurance cover flooding?

Home insurance can cover flooding, but it depends on the type of policy you have.

Buildings insurance typically covers the structure of your home against flood damage, such as to walls, floors, and permanent fixtures like kitchens and bathrooms.

Contents insurance can protect your belongings, including furniture, electronics and carpets, if they’re damaged by floodwater.

In most cases, flood cover is included as standard in home insurance policies, especially if you live in a low or medium-risk area. However, if you live in a flood-prone location, insurers might charge higher premiums, set a higher excess, or exclude flooding altogether.

If you’ve struggled to get flood insurance due to your postcode, the Flood Re scheme could help. It’s a Government-backed initiative that works with insurers to make flood cover more affordable for homes at risk.

We have an explainer on the Floor Re scheme here: Flood Re Scheme: House Insurance for Flood Risk Areas

Kelly Ostler-Coyle, head of communications and stakeholder engagement at Flood Re, said: "Flood Re has supported more than 600,000 households access affordable home flood insurance since its launch in 2016.

"Our definition of flood was agreed by the insurance industry and the government ahead of the 2014 Water Act. Flood Re is a reinsurer which means we reimburse insurance providers the cost of an eligible flood claim once they have already settled it with their customer."

You may want to check your policy wording carefully to understand what’s included, and whether alternative accommodation is covered if your home becomes uninhabitable.

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