Warning of new flood risk changes to insurance premiums

Thu 10th May 2012

The Association of British Insurers warned that up to 200,000 homes could struggle to find adequate insurance cover for flooding next year.

Recent bad weather and flash floods have only highlighted that it is not just coastal properties or those lying next to rivers that need to be adequately protected, but unexpected weather conditions can cause problems to those houses where the nearby ground cannot cope with sudden heavy rainfall.

Coodes’ property experts advise those considering buying a property to always check first that the insurance premiums are affordable before getting to the stage of exchanging Contracts.

The Government’s plans to cut funding for flood defences has provoked Insurance Companies to react by refusing to renew their current “Statement of Principles” agreement – a special agreement which allowed flood-hit homeowners of properties built before 1 January 2009 to renew insurance automatically against repeat flooding.

With the Insurance Industry also planning changes to the current structure of insurance premiums, the knock on effect to homeowners will mean a substantial increase in premiums and in some extreme cases the inability to obtain insurance for flood risk for householders.

It is prudent for all home buyers to be prepared for premium rises and to obtain property insurance quotations as early as possible.

For more information contact Jo Morgan – 01726 874700 or emai jo.morgan@coodes.co.uk

Thu 10th May 2012

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