Flood Insurance In The United Kingdom
A projected two million plus homes in the UK could be at risk for flooding. This projection is based on potential inclement weather conditions, such as heavy rainfall or high tides.
However, possible mechanical failure should not be overlooked as a flooding concern. For example, broken pipes could create extensive flooding damage. Understandably, homeowners near the coastline would expect to be affected by flooding, however it is imperative that all homeowners review their policies to ensure adequate flood protection is in place.
During a recent survey, it was found that the British population was grossly underinsured against flooding. The results of this survey are supported by the 52% of consumers affected by flooding in 2006, only to find that their insurance did not cover flooding. Premiums will vary based on level of risk to flooding in your area. Flood maps, created by the Environmental Agency, are utilized by insurance companies to calculate flooding risk. If an area has a 1 in 75 chance or higher of flooding, it is determined to be a high risk area.
All those home owners, who live in dangerous places which face severe ravage of floods, should adopt such measures which reduce the risk of flooding, on their own. They should procure such items which reduce the risk and even insurance companies may ask them to equip themselves with such items, before processing their applications.
As a homeowner with flooding risk, the expectation is that all prevention measures are taken to guard against flooding. Insurance companies may require that products designed to prevent flooding are purchased and installed prior to review of an application. All homeowners, but particularly high risk owners, will benefit greatly by shopping around for insurance as the cost can vary greatly by company.
There are insurance companies that use postcodes to determine the level of flooding risk, causing homeowners with a low risk to unjustly pay higher premiums. In order to avoid high premiums, homeowners should shop a wide varied of insurance companies to obtain one with alternative assessment methods, ideally gaining a lower premium.
Graham McKenzie is the syndication coordinator a leading South African Insurance information portal, which amongst others specialises in Short Term Insurance.
