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The Downside To Living In A Flood Risk Area

Jan 8, 2008
When you build or purchase a home in a flood zone area, you are accepting with it a number of consequences. Floods can come at any time, with little to no warning, and you must always be prepared for one. The other downside to living in one of these areas is that you will pay a higher flood zone insurance premium.

With the recent floods in the UK in 2006 and 2007, and the amount of destruction and devastation caused, insurance companies have started becoming more reluctant to offer policies to people residing in high risk areas. With so many people filing claims at once, providers are faced with the options of having to raise the premiums for everyone or losing so much money that they are forced to close.

With this, flood insurance providers are appealing to the government to focus their attention in increasing flood defenses especially in the areas worst hit by the recent floods. Most of the standard home insurance policy providers in the UK very rarely include flood damage cover. This is why you have to ensure your homes and your house contents with flood insurance policy.

Faced with millions of pounds worth of flood damage insurance claims due to the recent severe flooding in the UK, do not be surprised if your insurance provider will refuse to renew your current policy when it expires. This is particularly true if you have been a victim of the floods or your house is located in the flood zone.

Insurance firms have a business to run and if you pose as a high risk customer, you can not blame them and they are not obligated to renew your flood insurance policy even though you are an existing policy holder of their company.

In some circumstances, you might be able to get your policy renewed, but even in this case, you will have to expect to pay a much higher premium if you live in or near an area hit by the recent flooding. This is one of the drawbacks to living in a high risk flood zone. You may want and need coverage, but even if you are able to obtain it, the providers will not be lined up to offer you deep discounts and cheap policies.

If you are a victim of the recent flooding, and have been hit with the devastation of losing your home and possibly your possessions, trying to get a policy now may unfortunately not be the best move. Right now, insurance companies are still reeling from the blow of the massive amounts of claims they have had to pay in the last two years alone.

There is even the possibility that many of the existing insurance companies may remove flood insurance cover from their standard insurance policies unless the government will do something, like focus on this problem and increases its budget for flood defense. If this happens and the government will not make a move, those living in the flood zone or those considered as high risk areas will suffer.
About the Author
Searching for advice on flood insurance , flood insurance basics or lessening your flood insurance premium? FloodInsuranceAdvice.com is a large information resource on all aspects of flood insurance.
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