Insurance premiums rise with flood waters

by Money Doctor Thursday 17 January, 2008

Floody hell, yet more severe weather!

And if that isn't bad enough, last year's floods have pushed up the cost of our home insurance premiums, as we all begin clearing up after this week's latest bout of flooding.

The AA said the rises reflect the £750 million worth of domestic property claims following the worst flooding in areas of Yorkshire and Gloucestershire last summer which forced 14,500 families into temporary accommodation.

  • Average quoted premiums for home buildings insurance went up by 1.4% to an average of £218.60 for an annual policy over the last quarter. (This is the highest level since the AA started its British insurance premium index in July 1994)
  • In addition, the average cost of home contents cover stood at £150.57.

John Close, insurance relations director at the AA, said the average cost of claims from the floods was approaching £52,000:

"Buildings insurance premiums are at their highest since the index began, but I'm surprised that premiums have risen so little over the past quarter".

"I hope that the government's climate change bill includes robust provisions to ensure that new buildings are more flood and storm resilient, particularly after the renewed flood threats of the past few days."

"Local authorities must also think through where new housing is built: it will help no one if families find their homes are uninsurable because of where they are located," Close added.

But despite the rising price of insurance cover, the AA index showed that if you shop around for cover you could actually end up paying less in premiums than if you had bought a policy in the previous quarter.

The Shoparound premium (an average of the lowest three quotes) for buildings cover fell by 1.1% to £145.66, while that for contents insurance dropped by 2.8% to £82.56 a year.

So, let's face it, as its January in England, we are likely to get more bad weather and probably some more flooding!

With that in mind (and wherever you live), you should check your home insurance. Then you should look around to see if you can get a cheaper premium.

Here are a few worth looking at:

Zurich home insurance

AA home insurance:

Halifax home insurance

Prudential home insurance

Categories for this post: More Money Stuff

Related sites

Related posts

Comments

Douglas says:

Thursday 17 January, 2008 / 23:01

It's time for everyone that is threatened by flooding and the damage it causes to begin to take steps to avoid the damage instead of waiting till the flood is over and trying to collect on damages.

There are now multiple systems available that can provide robust, affordable, and reusable protection from floodwaters up to and beyond 140cm deep. Avoiding the floodwaters will always be less costly than trying to clean-up afterwards.

Jas from Hull says:

Monday 21 January, 2008 / 15:01

Dear Douglas,

A lot of people in my area (East Yorkshire) did not get a warning to protect their properties from flooding, as a result of surface water building up from heavy rain storms that failed to drain away. Also, many people could not get to their houses (or were prevented from leaving work by their employers) to protect them from the floods as the roads were unpassable due to flooding!
It is a requirement for all people who made a claim for flooding to give info to their insurers on what they, the local auth, water company,etc plan to do to alleviate possible flooding in future on renewal.
There is only so much you can do to protect a property and I can assure you that you need not worry about your own precious purse. Speaking as a flood victim like the thousands affected here, particulary the elderly, we would not want to go throught the stress of this situation again and most would do what they can to prevent it happening again.

Add comment

(required)

(required, will not be published)
 
(optional)

[b][/b] - [i][/i] - [u][/u]- [quote][/quote]



Live preview

says:

Friday 21 November, 2008 / 21:05


Related sites

Recent comments