Flood Insurance

Insurance Quote Line

0845 108 0505

• Home
• Mortgages
• Loans
• Investments
• Banking
• Pensions
• Life Insurance
• Health Insurance

Flood Insurance

Flood insurance provides cover for a property against flood damage. You should contact your lender for advice or to find out if this type of cover is necessary as it is not usually included in the standard homeowners’ insurance package.

Recently the UK has seen the devastating results of climate change, rising sea levels and heavy rainfalls in the high levels of flooding across the country. This in turn has led to a huge increase in flood related claims. The incidences of flooding are now nearly twice as frequent compared to 100 years ago.

A report released in November 2007 revealed that 2.2 million UK properties are in flood risk areas (10 % of total homes in the UK affecting roughly 5 million people) and those living in such areas may soon face unaffordable home insurance costs.

Applying for cover

If you have been affected by flooding or if you live in a "high risk flood area" you might find it hard to get insurance for your home.

Insurance companies will start by underwriting according to postcodes, the way in which subsidence impaired properties are dealt with. If a buyer can't obtain full perils (the danger of flood) household insurance then he or she will find it difficult to get a mortgage as lenders normally require full terms household insurance before advancing funds.

An insurance company will also look at the applicant’s claims history before approving an application for full perils insurance. So if a house has been flooded this will have to be declared on the proposal form. The provider may underwrite other properties in a bid to offset the risk of flood claims. This is assessed on a case-by-case basis.

Some insurance providers assess every possible risk to your home and will provide cover on the property as long as they believe sufficient work to reduce the impact of flooding has been carried out by the Local Authority, Government, Environment Agency or even by the householders themselves.

ABI Warning

The Association of British Insurers (ABI) has warned the UK government that more money must be spent defending British homes and businesses against flooding.

The ABI is asking for a 10% increase in government spending every year with a target of £750 million by 2011 otherwise it fears many of the UK’s private insurance providers will be forced to suspend flood cover policies.

The ABI is urging UK home and business owners to review their policies to make sure that they have adequate cover.

According to the ABI, the summer floods of 2007 resulted in 130,000 claims, of which 100,000 were for home insurance and 10,000 for motor insurance claims. The total cost was in excess of £3 billion.