Insurance premiums set to rise on flood plain homes

Commenting on today’s repair efforts by the ABI and the Government after last summer's flooding, Richard Mason, director of insurance at price comparison site moneysupermarket.com, said:
“It is now likely that those who unfortunately live on a flood plain will see a hefty hike in home insurance premiums in the future.

“From the figures presented by Defra, the average cost of settling a claim for flooding has now jumped to between £70,000 and £200,000 per household. This amount is unsustainable for the insurance industry to bear in the long term unless insurance premiums rise. This is especially true if assumed global warming is likely to lead to more frequent incidents of adverse weather in the future.

"For those looking to move home, it is essential to check the environmental agency’s flood map and assess the risk to your area, and really consider the flooding danger and financial repercussion living in a flooding zone creates. Homeowners whose properties are at risk must have good-quality home insurance. Doing so ensures they will continue to be covered regardless of what happens in the future.

“My advice is to have a policy with a well known insurer, such as Norwich Union or Halifax. People should also check the details of what their buildings and contents policies cover as well as the limits and excesses on both.“