Door is open for specialist home insurers

James Harrison, CEO of Insurancewide.com, the online insurance comparison service, said he expected other insurers to follow Norwich Union's lead in raising home insurance premiums as a result of the recent flooding.

“While most homeowners will not see the entire 10% rise, those who live in flood hit areas are more than likely to see their premiums increase considerably. “

“Insurers use flood maps based on postcodes to assess the risk of a property. These maps vary between insurers so even if one insurer considers your property to be a high risk, another one may not. Always inform your insurer if you live on top of a hill or in a high-rise flat as although the surrounding area may be at risk of being flooded, your property won’t face the same risk.“

“It’s unlikely that properties will become completely uninsurable because if the mainstream companies do start to withdraw from flood-affected areas, there is an opportunity for specialists to move into the market. Premiums offered by these specialist insurers are likely to be higher but should ensure that properties at risk of flooding are fully covered in the event of a disaster. These specialist insurers may require homeowners to take extra precautions to prevent flooding. “

Homeowners whose home insurance premiums have increased are advised by Harrison to shop around to find a more competitive deal.”

“But don’t cancel your existing policy until you have found a new insurer who will definitely provide a decent level of cover.”

With extensive market coverage, Insurancewide.com guides its customers to the most relevant insurer for their needs, whether specialist or mainstream. Its comparison system takes into account suitability and relevance of the insurer to customer profile as well as price and ranks shortlisted insurers accordingly.