Householders hit by floods should shop around for best insurance deals

The flood damage caused by the current torrential rain will inevitably put upward pressure on premiums – but not all insurers will be equally affected, and it will pay homeowners to shop around when it comes to renewing their home insurance.

Debra Williams, managing director of Confused.com, the UK’s leading car and home insurance search engine explained: “Millions of home and car owners could find themselves twice hit by the floods of recent days, as insurers look to recover the cost of claims, estimated to total hundreds of millions of pounds over the last week alone.

“Insurers that are particularly hard hit by claims may have little choice but to increase premiums over the coming year. This is likely to affect people living in flood prone areas, and most particularly those that make flood related claims in the form of increased compulsory excess levels. However, some insurers may be less affected than others, and it will pay to shop around for the best deal – some insurers could be offering significantly more attractive premiums than others.”

The misery of the floods is likely to be spread widely, however – and will require more careful thought from all those insuring their property.

“Insurers might react in one of two ways to increasing adverse weather incidents,” said Debra. “More obviously, premiums could rise giving insurers greater reserves to draw on in the event of weather-related claim payouts. Less obviously, insurers may increase minimum excess levels for flooding claims. In both instances, homeowners will need to build up their own financial reserve should the worst happen.

“For householders that have made flood claims in the last ten years, specialist insurers may be the best option as many general insurers choose not to quote on flood risks, or simply provide uncompetitive quotes. One alternative is to compare quotes from specialist providers such as Adrian Flux and Bureau Insurance Services who often provide competitive cover for properties in flood risk areas.”

“Rain fall over the last week will undoubtedly mean large insurance payouts, however it could also lead to more stringent loss adjusting as insurers look to root out fraudulent claims and cases where actions taken by their customers invalidate policies.

“For example, although drivers can claim for damage caused by bad weather conditions, this typically applies to parked vehicles. So-called “self-inflicted” damage caused by driving through water, thereby flooding the engine or interior, may not be covered. As a result drivers chancing their arm through floods could find themselves facing an expensive repair bill.”

Debra added: “To speed the process of any claim we advise that photographs are taken of damage, and that a ruined property or vehicle is left until your insurer can inspect it. This should help ease the claims process and speed pay out.”