Household & Home Insurance Set to Rise in Flood Areas
Five million households on flood plains have been warned that they face hefty increases in their household insurance premiums.
Even more worrying is that thousands more could be blacklisted, according to leading insurers.
The estimated £3.3billion cost of dealing with this year's floods is leading many firms to consider premium rises.
Some insurers have warned that all householders will face higher premiums, but those at risk of flooding are likely to see the biggest increases.
The home insurance industry is bracing itself for more claims caused by floods and droughts amid warnings of climate change.
Last year's drought triggered a sharp rise in household insurance claims related to subsidence.
An informal agreement between the Government and the industry ensures that homeowners who currently have insurance will be able to renew it.
This agreement does not prevent insurance companies increasing premiums or policy excesses.
Insurers have stated that they will withdraw cover if they feel the Government is failing to maintain and improve flood defences - which the National Audit Office says is the case.
According to a recent investigation, there are serious failures in the Environment Agency's policing of the situation.
The NAO found two-thirds of England's flood defence systems have not been properly maintained.
Indications are that an average insurance premium increase of ten per cent will be applied when customers renew their policies.
It seems that increased charges will apply to all household insurance customers, not just those affected by recent flooding.
By dealing with a specialist Household Insurance Broker means you will benefit by having quotes from a panel of insurers, plus specialist household insurance brokers have special discount schemes to help keep premiums down.
Oakland Insurance Services specialise in Home Insurance, if you would like a free no obligation quotation please get in touch.
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