Home insurance increases for every home owner may be coming due to flooding
Insurers are becoming more accurate at predicting flood risk to individual properties rather than a post code area as previously.
This has resulted in policyholder's premiums rising substantially some as much as 35%, after a new flood risk assessment by their insurers.
The Association of British Insurers says the current pricing reflects accurately the flood risk in 99% of cases although some homes may be on higher ground and be incorrectly assessed.
From June 2013, some homeowners are at risk of having their cover withdrawn because of the flood risk.
This is because the Government and the Insurance industry agreement on universal home insurance irrespective of any flood risk ends.
Amazingly, the ABI is suggesting that an agreement could be reached where no risk and low risk policyholders pay a "small levy" that will then be used to extend cover to homeowners exposed to moderate or high risk of flooding.
This is madness.
You would not expect a mature low risk driver to pay a levy to cover the extra risk of an accident by a young high risk driver, anymore than you would for a mini owner to pay a levy for the extra risk of a claim from a high performance sports car.
You wouldn't expect a non-smoker to pay a levy to cover the higher claim risk of a smoker on a life insurance or critical illness policy either.
To be flooded once is unfortunate, twice is careless!
If people buy homes in areas with a high risk of flooding, or have not had the sense to flood-proof their homes following first-time flooding, then why should everyone else be expected to subsidise the additional risk of insuring their home and bail them out?
In addition, the cost of flood damage to new homes that are flooded within the first ten years, should be paid for by the house builders.
