Home Insurance in Flood Risk Areas
Over 5 million people in the UK live in flood risk areas. For insurance firms, any property that falls within an area prone to flooding is high risk. Some insurance firms simply refuse to offer home insurance to anyone wishing to live in these areas; others will take the risk but will ramp up the premium accordingly. They will also tend to increase excess levels into the thousands to deter customers from making a claim.
Insurance firms will determine the flood risk based on information supplied by the Environment Agency (EA) as well as local and national statistics. The EA also provide insurers as well as the general public with an online flood map. The map shows whether an area is at low, moderate or high risk of flooding taking into account factors such as how often the area has flooded before, the amount of rainfall in the area as well as the local landscape.
Reduce Potential Flood Damage
If you are planning on moving to a flood risk area then look at ways in which you can protect your property from water damage. Being aware and taking action to reduce the risk of flooding to your property will reduce your premiums. Speak with your insurance firms first before buying flood defence systems to see what they recommend and which products will reduce your premiums.
Flood Defences
If you are yet to make a decision on a property and are concerned about the cost and feasibility of obtaining home insurance, take a look at any future plans the local council have for flood defence in the area. If they plan to improve defences in the area then insurance premiums will subsequently drop.
Specialist Flood Insurance?
You can also save money on your home insurance by shopping around. Insurance firms use different methodologies to determine the risk of flooding. The area you are looking to move to may be high risk to one insurer but low risk to another. They will also vary in cover so make sure you read the small print.
Home insurance in flood risk areas needn't be taxing. There are a number of specialist insurers who have the experience and knowledge to provide you with the right level of cover so that your property and possessions are protected from the elements.
DISCLAIMER: All content is for guidance only and does not constitute individual financial advice.
www.homeinsuranceinfo.co.uk is not authorised by the FSA to advise on insurance matters.
