uSwitch.com: Severe gales and coastal flooding

Ashton Berkhauer, insurance expert at uSwitch.com, the independent online price comparison and switching service, comments on the severe gales and coastal flooding currently hitting Britain:

“Following on from last year’s summer floods which have already cost insurers an estimated £3.5 billion, Britain has been hit by a series of severe gales and coastal flooding reminiscent of the storms of 1987. The full impact on home and car insurance premiums is not yet fully known. However, analysis by uSwitch.com indicates that home owners in the South West affected by the storm damage who go on to make a claim, could take a second hit with home insurance premium increases of up to 40% when they come to renew their policy. For example, home owners living in Glastonbury could see their premiums increase on average by £58.08 a year.

“Gales and storms have swamped some parts of the West Country, with roads being submerged in water. Across the UK there are now over 2.3 million properties in flood risk areas with assets valued at over £237 billion. It’s estimated by the ABI that as a result of last summer’s flooding alone, over one million people may struggle to find competitive home insurance cover if they live in a flood risk area. However, it is not just insurance premiums that could increase. Research has recently shown that home insurance excesses could rise substantially to such an extent that some families may find themselves unable to actually afford to make a claim should they need to.

“But we shouldn’t just be concerned about our homes. uSwitch.com data indicates that 1.7 million cars are also at risk of flood damage throughout the country. There are almost one million vehicles in the South West with third party cover only, which means that any damage caused by falling trees and debris as a result of the strong winds will not be covered.

Berkhauer concludes: “During these freak weather conditions, it’s important that all home and car insurance policies are kept up to date and accurate to guarantee a successful claim. All consumers concerned about their insurance should let their provider know about any omissions they did not originally class as important – such as trees near their home or parking their car on the road. At worst, failure to disclose information could invalidate a policy. 77,000 fraud cases stood on file last year based on inaccurate insurance policies, so it’s vital to make sure insurance details are kept up to date.

“With the average car insurance policy costing £409 a year and home building cover costing £230, it is more important than ever that consumers review their current policies. They must ensure that they have the correct level of cover against flooding and storm damage at the most competitive price.”