Home Insurance after the floods

The recent storms that have swept across the UK have brought with them record levels of rain. It has resulted in flooding in many areas of the UK. Unfortunately, the flooding is unlikely to be a thing of the past. For some, it is likely to become a frequent occurrence. Having household insurance is, therefore, important. It will allow homeowners who have seen their home damaged as a result of the flooding to rebuild.

Am I Covered?
Firstly check whether your home is in a flood-prone area. You can do this by checking online for information about which areas are at risk.

Flood insurance is a part of both building and contents insurance. It does not mean however that you have automatic cover. While most household insurance policies may include as standard, the levels of protection are likely to differ between the different policies. Checking your policy documents is important. If it is unclear then, you should check what cover you have with the insurance company.

Insurance Premiums
If your home is one of those flooded due to the heavy rainfall, the likelihood is that your insurance premiums will rise the next time you come to renew it. You may also find that you have to pay a larger excess on any claims you make in future.

Even if you are not living in an area that is at risk of flooding, it is important that you shop around when renewing your insurance. Doing so may mean that it is possible to get a better deal. Depending on where you live getting cover for floods as part of your standard contents cover might be a challenge. Rather than find cover from one of the mainstream insurers you may need to obtain specialist flood insurance.

Flood Re
Unlike ten years ago, the risk of flooding and a better awareness of the risks have increased notably. A large number of households in the UK are now in danger of being hit by flooding. The result is that affordable insurance cover is becoming harder to find.

Since no one wants householders not to be able to get insurance for his or her home, the insurance industry and Government are launching a new scheme in April 2016 called Flood Re. It will allow insurance companies to get flood reinsurance for those homes most at risk. By passing on the flood risk element, should there be a claim for flooding then it pays out to the insurer the funding needed to cover the pay-out to the householder. For the homeowner, Flood Re will ensure that affordable insurance cover is available to flood-prone properties.

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