Home Insurance for Flood Risk Areas

During the summer of 2007 you couldn’t turn on the television without hearing about the devastating effects of the floods that swept across Britain. However, whereas many of us were fortunate enough to watch from afar, for the residents hit by the severe weather the aftermath is still being felt to this day.

According to research from the Association of British Insurers (ABI), three-quarters of people believe that not enough is being done to tackle flooding. Campaigners believe that better drainage is needed and that the Government should reduce its target of building three million more homes by 2020. However, while these are the wider issues to be debated in Parliament the harsh reality on ground level is that half a million homeowners will now struggle to get home insurance.

Last year, home insurance companies were forced to dig deep into their pockets to pay for the damages caused by the flooding – they spent around £3bn on flood damages alone and received around 165,000 claims. As a result, many home insurance providers have stopped offering quotes in high-risk areas altogether.

How can you secure home insurance in a flood-hit area?

Chances are that if you were affected by last year’s floods or live in an area considered high risk, your renewal quote will have leapt compared to previous years. Normally the solution would be to shop around for home insurance quotes elsewhere, but many providers have withdrawn from the high-risk areas.

Consequently, it’s crucial you take a more extensive overview of the home insurance market. Don’t limit yourself to one or two companies as chances are the premiums will be expensive. Take as thorough an approach to the market as you can – the simplest way to do this is by using a comparison website and comparing dozens of quotes in minutes from a range of providers. Comparison 2.0 websites will allow you to compare the level of cover as well as the price.

Also think about your circumstances and make sure your home insurance provider understands your situation. For example, you may live in a flood risk area – but what if you are on a hill or in a high-rise building? In these situations you shouldn’t be penalized for where you live.

If you’re not sure whether or not your area is deemed high risk, visit the Environmental Agency website where you can search via postcode to see if your home is under threat. Remember too that each insurer judges risk in different ways, so just because you’re at high risk with one provider doesn’t mean you’ll be considered a risk to another. It’s well worth shopping around.

How can you ensure you have suitable home insurance cover?

It’s not just the price of the policy – it’s also vital to ensure you are suitably covered should a flood take place.

According to the Financial Ombudsman Service there has been a rise in the number of rejected home insurance applications. This is because many homeowners are allowing their homes to slip into a state of disrepair. Remember buildings insurance policies do not cover wear and tear – so if tiles blew off your roof in a storm, and they were already loose, then your insurer won’t pay out.

As a consequence you should check the details of your policy closely and look for exclusions. If you do fall victim to a flood or severe weather, do all you can to increase your chances of receiving a payout. Take photographs or video footage of the damage. Keep any property that is damaged as it may need to be assessed. Also get a weather report from the internet to back up your story that severe weather hit your area that day as it may not be recorded by the provider.

How to sink your home insurance costs

Many homeowners are unaware that 90 per cent of flood damage is caused by the first inch of water that enters a property.

If you want to avoid making a claim take steps to prepare yourself for the next flood. Keep your property in a good state of repair and clear gutters of rubbish and check pipes for leaks. Attach floor-skirts and barriers to doors and windows that can be slotted into place should severe weather occur.

Keep a stock of sandbags at your home and try and move high value items upstairs away from any potential water seeping into the building. Move plug sockets further up the wall, firmly secure outside objects and keep a home emergency kit just in case you’re blockaded for a period of time.

The good news is that some of these measures may even earn you discounts with your home insurance provider, as long as you keep it informed.