Insurance won't cover Joe Danger, No Man's Sky dev's office flood

Hello Games says its insurance isn't going to help after recent storm resulted in significant damage.

Things just got worse for Joe Danger and No Man's Sky developer Hello Games. The company's insurance will not cover the flood damage its Guildford, UK studio sustained during a terrible Christmas Eve storm last week, the outfit said on Twitter.

"BAD NEWS! Had a 'hilarious' call with insurer yesterday. Small print is if you are in a flood risk zone, you are not insured for flooding," Hello Games said.

The studio wasn't entirely downtrodden, however.

"On a brighter note, no insurance means we can just wade in and start setting things straight," Hello Games said.

The Hello Games office sustained significant flooding damage on Christmas Eve from a storm that ripped through the area. The studio said it lost almost everything in the flooding, including PCs, monitors, and furniture.

Hello Games, which has fewer than 10 employees, is currently working on the ambitious, procedurally generated game No Man's Sky and Joe Danger Infinity. It is not clear how the office's flooding will affect development on those titles.

We will continue to monitor the story as it develops.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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Discussion

152 comments
key3
key3

Flood insurance is a completely separate policy.  It's not usually covered under your basic homeowners or business policy.

sevenwarlocks
sevenwarlocks

Bummer for Hello Games, and what a shame, given how interesting No Man's Sky looks. I'm not surprised to find that folks in England don't have flood insurance—very few people in America have it—and a surprisingly large number of them assume that they do. I wouldn't blame this on evil insurance companies, though. As in any other business deal, if you ain't got papers saying you got a claim, you ain't got a claim. This was just one of those random dangers that comes from living in the real world. Some days, the bear eats you.

sainraja
sainraja

What good are insurance companies for then? 

Where flood insurance is necessary is where they don't cover it....

zenstrata
zenstrata

Unfortunately, this is pretty common.  Insurance companies are famous for putting crap like not covering flood damage into the fine print of thier policies.

Marky360
Marky360

Insurance companies are a joke they don't care about actually helping ppl they just look to profit off of ppl they don't actually want to help if something happens. And if something does actually happen they'll try everything possible to not pay out. Not being covered for floods in a flood zone is the exact type of BS insurance companies use to keep from having to pay out any money because they could care less what your going through end rant on insurance companies.

Brakkyn
Brakkyn

Kick 'em while they're down, whydontcha?

StHapns247
StHapns247

Insurance agent: "Can't you just procedurally generate all your losses."

Rusmurf
Rusmurf

Floodplain flood insurance is astronomically expensive in places like the US and UK. Would have cost them more then their rent.

Mrchainey
Mrchainey

If Hello Games have genuinely been advised incorrectly by their insurance broker / insurer then I'm sure they will be pursuing a complaint via that company or ultimately the Financial Ombudsman Service. However as they are sounding off about it via social media I suspect that someone in their organisation did not check or understand the contract fully when arranging the policy. Either way they seem to be putting a positive spin on things and I hope this does not negatively impact what appears to be a very promising game.

93ChevyNut
93ChevyNut

When GS starts talking about insurance instead of games, I may start visiting a different site.

eternaldragoonx
eternaldragoonx

Insurance companies are bunch of frauds. However I am sure that a bunch of gamers and kind devs and publishers will help them out of this.

Grenadeh
Grenadeh

What, fuck off insurance.

sortajan
sortajan

let this be a lesson, never live in anything that isn't suspended at least six miles above sea level

Morphine_OD
Morphine_OD

This is obviously written in the contract and if you don't read it carefully, you're bringing this stuff on yourself. No one's to blame there, but yourself.

NoFear87
NoFear87

Familiarizing yourself with your insurances and the insurance-market is a part-time job, and should not be taken lightly.


Good luck to Hello Games, I'm sure they'll pull through by the power of hype.

kuda001
kuda001

Unfortunately, the insurance company does spell it out in the 'Statement of Insurance' or SOI. Flood risk is a major rating factor with any insurer so Hello Games should have been well aware of this. If they weren't, it's their fault and they should have sought an insurer who would have offered cover with flood damage included.


However, good luck to them.

Nitroc
Nitroc

no more basements !!!!!

lord_boston
lord_boston

Kickstarter would solve all their problems. I would give them a lot of money to get to play No Man's Sky.

amdreallyfast
amdreallyfast

New kickstarter for getting things started again?

tightwad34
tightwad34

Kind of ironic how the most abundant thing on earth can also be one of the most damaging things. I guess there has to be a balance. Either way this sucks for them and I wish them nothing but better fortune from this point on.

andyhoov
andyhoov

Insurance varies from country to country (and state to state for that matter) but the way floods work in the US is that flood insurance is only sold in areas deemed flood zones and, even though the insurance companies are the ones selling it, the policies themselves are actually managed by the federal government. This is done because floods present too great of a risk for most insurance companies to be willing to handle because they can cause massive amounts of damage across a very widespread area. This means a flood could result in huge numbers of very significant losses that could potentially drain insurance companies to the point that they are then unable to meet obligations elsewhere. In other words, insurance companies could either choose to greatly increase premium or to simply choose not to cover floods.


The federal government, on the other hand, they can dip into national funds when claims exceed incoming premium. Earthquake insurance in California works in a similar manner only on the state level.


Yes, it can be easy to rag on insurance companies, but let's be honest here. The vast majority of people don't have the funds to rebuild a home or buy a new car on sudden notice, so instead they pay insurance companies to assume a portion of that risk, along with matters of personal liability such as damages to others. If insurance companies simply provided blanket coverage for everything and anything that could go wrong then they would either have to charge so much that nobody would want to buy it or they would go out of business for paying out more than they take in. Add into the equation the fact that 95% of the people on this planet have no clue how insurance works, and that just makes the situation that much more difficult for everybody.


Ultimately, I think the number one thing to know about insurance is that it is all about risk assessment. Insurance companies need to make sure that they are charging sufficient premium to assume the risk in question, because ultimately that balance is what allows them to cover not just you, but all their customers in addition to paying their employees and operating a business that is ultimately meant to make a profit.

cctv100
cctv100

Good luck to you my friends in Hello Games, the  Insurance company sucks

vic3cr3amy
vic3cr3amy

ReKickstart!!!! Ftw. ( and throw in a flooded planet easter egg ) please. =)

Razarealm
Razarealm

Im sorry for Hello games but i can be certain that when they signed onto their insurance they are asked to read the policies/terms. 

raydawg2000
raydawg2000

property in floodzones have to purchase flood insurance...and its usually made known to the owners but people just assume it will never happen to them.  Knock on wood cuz i didn't purchase any for my house...

King_Wii
King_Wii

Ethically speaking the Insurance company should have warned them that they weren't covered and they were in a danger area. Then they could have sold them overpriced flood insurance!

Kradnam2
Kradnam2

that's bullshit that insurance companies do that, Insurance should mean covered for everything, not just if a meteor hits your house or building.

RevLux
RevLux

Gotta get that flood insurance. It's not worth the risk. Especially if you live and/or work in a flood plain.

key3
key3

@zenstrata The government handles flood insurance through the National Flood Insurance Program.  The standard policy has an exclusion for flood.

key3
key3

@Marky360 Flood insurance is a completely separate policy and the rates are determined by the government.  You're not going to find flood being covered under ANY homeowners or business policy.


key3
key3

@Brakkyn It's not the insurance company's fault that the developer didn't purchase a flood insurance policy.

styymy
styymy

@93ChevyNut  Honestly its not really about insurance...The info about the insurance was relevant to the story as it was reported to GS by Hello Games. They key here is Hello Games is reporting to GS not the other way around. GS is just relaying what was told to them, why the hell would they change someone's words around and pull out the issuance information? News accuracy is more important here and I appreciate that as you should too. Don't be an ass.

ghost59
ghost59

@gameroutlawzz actually that would be cool. 

you go into a basement and it turns out endless. with loads of monsters and aliens., you have to find your way out. 

Marky360
Marky360

Morphine_OD

No its the insurance company to blame even if this is written into the contract its low underhanded and dirty I mean come on whats the point in paying for insurance if its not going to actually help you when you need it. That why all insurance companies are truly just out to make money they don't care about helping you out if god forbid something actually happens to you.

amdreallyfast
amdreallyfast

@tightwad34 Yup.  It is also potentially lethal when inhaled, can cause severe mineral deficiency in cells when too much is ingested, is a major transportation hazard when solid, can cause burns when in gas form, is the major component of acid rain, contributes to the greenhouse effect and to the erosion of our natural landscapes, accelerates corrosion of many metals, may cause electrical failure, and decreases the effectiveness of automobile brakes.

Help us stop dihydrogen monoxide before it's too late!

CrouchingWeasel
CrouchingWeasel

@Baconelite 

FUCK YOU INSURANCE COMPANIES. The fuckers did the same thing here after the Queensland floods a couple of years back. 

Morphine_OD
Morphine_OD

@Marky360 so what's wrong with that? It's not like they are a part of church, or operate out of love for people, they make money. It's business. You have a problem with that - fine, don't buy an insurance. But don't blame them for not insuring you from every possible catastrophe for a dime.

Morphine_OD
Morphine_OD

Envious much? Insurance works and it always works. Would you rather pay for the insurance or buy a new car if it's stolen? I know I'd rather have my car insurance. If you think that some company infringes the agreement, you're free to sue them and sometimes people do just that, but quite often people like you are just leftist trash without any idea of how the stuff works and green with envy, because some people are smarter and have more money. And if you hate banking and insurance - no one is forcing you to use it, but no, you'd rather bitch and moan on the internet about it.

Seiki_sands
Seiki_sands

@Morphine_OD @Marky360 What's wrong with it is that they exist to make money without actually contributing anything, or as little as possible and as little as the law allows. They're parasites that try their best to add nothing to society, and they consider it a failure on their part when they actually are made to do their jobs and honor an agreement. Additionally, for an industry that produces nothing I find it interesting that 13% of the Fortune 100 are companies whose primary business is insurance of one type or another.