Flood Plain Insurance
The cost of flood insurance
people pay nowadays is affected by the location where their house
is located. Those people whose houses are located in higher-risk
areas pay higher premiums and higher excess on flood-related claims
as compared to those whose houses are in low-risk areas Premiums
on a house in a high-risk area may differ for example around £20
to £30 than in low-risk areas.
In the United Kingdom, more than two million properties
are located at flood risk areas. When you seek the services of a
flood insurance provider, they have their own maps to determine
if you live in a low-risk area. Although your insurance plan should
pay for all flood damage, your insurance provider also expects you
to take necessary precautions to protect your properties in case
of a flood, too.
If you live in a flood plain, expect your premiums
to be higher and an expensive burden. Some insurance providers may
even refuse flood cover on people in high-risk areas cover. You
can not expect insurance providers to give you a policy when your
house is a on a flood path and you get hit by floods often. It will
be suicide on their part, unless you will want to pay a high premium.
If the insurance providers think your house is
in a high-risk area, they may even resort to getting a surveyor’s
report before giving you a policy. If they give a policy to whoever
applies without considering the high-risk factor, they will have
to increase the cost of premiums for everybody to meet the cost
of insurance claims.
An estimate by the Government's Foresight Future
Flooding report in 2004 showed that the annual average flood damage
could increase even up to 20 times by the end of the century as
a result of climate change, so not only the UK suffering from flooding
because this is a global problem.
Floods can not be prevented but the people can
do something to protect their homes from floods. Here are some tips
from the Association of British Insurers (ABI). Concrete floors
can be replaced with wood and cover with tiles. Chipboard or kitchen
and bathroom units can be replaced with plastic equivalents.
The same is true with gypsum plaster. This can
be replaced with more water-resistant material, such as lime plaster
or cement render. You can also move service meters, boiler and electrical
points to areas above likely flood level. One-way valves could also
be put into drainage pipes to prevent sewage backing up into the
house, hence to prevent flooding.
The bottom line is that if you are moving house
or buying a property for the first time, always check whether your
intended new home is on a flood plain or not. This information is
readily available on the internet on official Government web sites,
so there is really no excuse for not knowing - and if you don't
know, you can be sure that you future insurance company does!
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