Author Topic: Homes at risk of flood could become uninsurable  (Read 3210 times)

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The Prophet

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Homes at risk of flood could become uninsurable
« on: January 02, 2012, 01:03:36 pm »
Homes in areas at risk of flood could become uninsurable and difficult to sell as the government and insurance industry dispute the best way to ensure cover remains available in future.
The present agreement on flood insurance runs out in June 2013. It commits insurers to provide cover where flood defences that can safeguard against a flood once in 75 years exist or are planned within five years.

Important for all new homeowners is the fact that all homes built after January 2009 are excluded anyway.
Those buying should check the Environment agency website to assess RISK OF FLOODING before buying!

If the existing deal is not extended and the ABI say the deal will not be renewed in 2013, insurers may decline cover altogether or increase premiums to such an extent that they will be unaffordable for many of the owners of the 300,000 properties most at risk.
Defra has ruled out any State help after a flood.
A Government spokesman said, "The priority will continue to be to invest in reducing the risk of people and properties being flooded in the first place rather than redirecting funds into subsidising insurance premiums."


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Home flood insurance - Time is running out
« Reply #1 on: April 23, 2012, 09:18:49 am »
Time is running out for homeowners with a high risk of flooding who may lose their insurance next year.
The voluntary agreement by insurers to continue to offer flood cover is due to run out in June 2013 and nothing has been lined up to replace it.

Without insurance, homeowners at risk of flooding may find it more difficult to re mortgage and the home may become impossible to sell.

For those who own or are thinking of buying a newly-built home, homes built before January 2009 are already exempted from the existing agreement.

The ABI is negotiating with the government to see what can be done when the deal expires.

One suggestion is a cap on the maximum premium a homeowner would pay.
If a particular home was more of a risk than the premium allows, the insurance would transfer into a central fund, where the premium would be topped-up from a levy on ALL British property insurance.

Those at risk are already finding both excesses for flood claims and premiums are rising fast.
A typical flood claim can be as high as £40,000, with a homeowner's excess of more than £10,000 for the highest risk homes.
After a flood claim, one householder saw his premium rise from £240 before the flood to £850 two years ago.
Last year his premium doubled to £1700 and this year he was quoted £2,400.

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