Insurance payout gets flooded car dealership back in business

26 March 2014

A car dealership based in Lowerstoft is preparing to reopen for business after its insurance company agreed to make a substantial payout to replace vehicles that were destroyed in winter storms.

Lings Honda, in Riverside Road, lost nearly 300 vehicles when its showroom was submerged under four feet of water during the floods that consumed Britain at the turn of the year. The firm is now back up and running after insurers agreed to pay £1.5 million to replace the irreparable vehicles.

The story serves as en excellent example of the importance of finding the right provider when shopping around for a motor trade insurance policy. To make sure you get the right quote from the right insurer, it’s worth checking that any quotes you receive include cover for any risks that are specific to your business in this case the risk of premises flooding as well as general cover for the dealership.

Many businesses in the region have not been as fortunate though; the Eastern Daily Press reported last week that many companies are struggling to recover from the tidal surge in the east of England as they did not have adequate insurance cover.

The Lings dealership was flooded by salt water on 5 December 2013 in the space of just 20 minutes. The Lowerstoft-based firm, which lost 200 cars and between 60-70 motorbikes in the incident, has said that it is now considering investing in flood defences to prevent any such problems in the future.

The company\’s sales manager Ben Thompson said: The entire site was under four feet of water and the office had to be gutted. We watched the security footage and it only took about 20 minutes for the water to get to knee level.

Unfortunately salt water damage is far worse then fresh water damage, so we ended up having to lose about 200 cars and 60 to 70 motorbikes. The forecourt is on a slight gradient, so while the ones at the top got wet, the cars on the lower floor got lifted away from the ground and were bumping into each other.

What seemed like a terrible experience at the time has now paid for itself. But we were lucky in the sense that we had paid for strong cover.”