Hope remains for insuring flood risk homes

One year on from unprecedented flooding in the UK, research shows that all is not lost for Brits trying to insure their homes in flood risk areas.

Price comparison site moneysupermarket.com compared premiums from June 2007 to June 2008 for Tewkesbury - classified as a high risk flood area - and two clear stories emerge. Firstly, despite the increased and known risk for flooding in this area, homeowners who haven't claimed for flooding are still able to get competitive insurance from a wide variety of providers.

However, the story changes if a claim for flooding has been made. In this instance only three insurers - Halifax, Birmingham Midshires and Sainsburys - return quotes. These insurers still offer competitive premiums though, returning quotes on average only £8.61, or five per cent, more expensive than the previous year.

Peter Gerrard, head of insurance research at moneysupermarket.com, said: "It has been a year since floods hit homes in Yorkshire, Gloucestershire and other parts of the UK. Those living in high risk areas can take some reassurance from our research. It is not all bad news - even if a claim has been made for flood damage, and only a handful of insurers will provide a quote - premiums remain incredibly competitive, highlighting the benefit of shopping around for your cover.

"The final report of The Pitt Review published last month calls for action to manage flood risk and to improve flood resilience in the UK. It is now up to the Government to provide a stronger and effective process to help prevent further flooding catastrophes and provide adequate funding for those affected; without this we may see an altogether gloomier picture and insurers may begin to hike premiums."

Peter Gerrard continues: "With the effects of last year's floods still etched in our minds it is crucial for homeowners to ensure they have adequate insurance for their homes and contents, whether living directly in a flood risk area or not. If faced with a flooding situation the last thing you want is to find yourself underinsured or worst - not covered at all."