Flooding Set to Increase Insurance Costs Again
With even more floods starting now the autumn and winter months are coming towards us insurers warn that premiums are set to rise.
Experts are warning that flooding in certain parts of England and Scotland will become common place as global temperatures continue to rise and the weather patterns change. A report from the ABI – Association of British Insurers recently estimates that global temperatures are set to rise by about 4 degrees over the next 50 years which means the annual flood bills are also set to follow.
This only means one thing in terms of financial certainty that people living in areas prone to flooding will set their premiums increase for buildings and contents insurance. Additionally of course if homes are on flood prone land the value of that property is likely to reduce.
As insurance costs rise it may be more difficult to actually get insurance if floods continue each year some insurance companies may actually refuse insurance as they know they will have to pay out because floods are almost guaranteed each year.
Advice in the market is if you are staying at the same address and have made a flood claim on the property in recent years is to stick with the same insurance company as they have your history. By all means go and get quotes from other companies perhaps using the price comparison websites but you may have to provide a lot more detail and it will take a lot longer to complete all the form filling.
But nevertheless any person who lives in a flood prone area should not only seek out cheaper insurance but ensure the quality of the policy purchased actually covers what they think it will. Reading the small print is essential especially if you are worried about flood damage and the speed of response.
Once you have been affected you not only want everything to be repaired but for the insurance company to help you through what is a difficult period. For example will they replace new for old? Will they put you up in alternative accommodation if you can not live in your home because of all of the damage to the property? How fast will they react?
Many people put their trust in insurance companies but some people from the floods of a few years ago are just now completing the building work and being paid for the damages caused.
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