Getting flood insurance in flood risk areas

In future insuring a home in flood risk area could be more difficult
Home Insurance in flood risk area can be more difficult to insure.

Flood Insurance

Adequate flood insurance cover for a property can help reduce the financial consequences, stress and trauma that flooding can bring. Insurance industry data indicates that households at high flood risk pay around £340 on average for buildings and contents insurance (ABI 2011). This compares with between £20 – £30,000 for the average cost of damages after flooding.

There is currently an agreement between the Government and the insurance industry, called the Statement of Principles that obliges insurance companies to offer flood cover as part of standard policies in most cases. The agreement does not guarantee cover for some properties e.g. those that continue to have a significant risk of flooding and in all cases does not affect the price of insurance which remains a commercial decision for insurers. The existing agreement is due to expire on 30 June 2013.

After 30th June 2013 it is unlikely that these agreements will be maintained meaning that 1000’s of homes will be left to the mercy of the Insurers and their understanding.

Due to the fact that most insurers have limited data to a particular post code area, this could mean that properties that clearly are not in danger of flooding are ‘tarred with the same brush’ making them, to most Insurers, uninsurable.

This is a major problem for Home and property owners in these areas and could lead to properties being deemed as Uninsurable.
Highhouse Insurance Services Limited has access to data that is even more detailed than that of the Environment Agency and is able to assess the potential risk of surface and other flooding down to a 5 Meter Square grid.

We have tested this data over the past 12 months and this is proving to be a ‘Lifeline’ to people that would have potentially been trapped in the trap of not being able to afford or even get quotations from insurers for their properties.

As such, we are able to offer flood insurance for properties that have been declined due to potential risk of flooding by other Insurers working without this data and now released under the agreement that is in place to the 30th June 2013.

At Highhouse we issue our own polices “in house”  for property insurance, underwritten by Lloyds of London, noting lenders interests if required and we can have you on cover, with the documents over to you, your solicitor or lender, in most cases on the same day. If you require a quote, please call our office on 01243 606552 or simply complete our online form for property insurance.

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