by Ant Insurance
16. April 2010
The floods of recent years have left many homeowners with a nightmare not of their making. Insurance companies are now increasingly failing to offer cover to homes that have experienced flooding or are likely to experience flooding. This makes it a costly exercise if they remain but equally they are unable to sell. Even those who have never been flooded will suddenly find their insurance company unwilling to renew long standing cover if the house is now found to be built on a flood plain.
However it is not just existing buildings that cannot get insurance. Insurance companies are now failing to provide cover for new properties that are being built on flood prone areas and any cover that is supplied is extremely expensive. This means that developers will find it increasingly difficult to sell these properties as people now become very much more aware of the issues that can arise.
Tighter regulations by the insurance industry are causing builders to avoid high flood risk areas but as land is becoming in short supply this is having a knock on effect on the market supply. The other alternative is to provide homes that will be better protected against the flood damage.
The insurance industry through the ABI is to offer advice to enable planners and developers to build insurable properties in high risk areas. They are offering access to information regarding available flood preventative measures; these include such things are risk assessment, flood resilient building materials and raised floors
These guidelines come on the heels of the ABI’s announcement that a high percentage of small businesses could become uninsurable if there is not an improvement to the UK flood prevention.
Other insurances to consider helping secure your home and lifestyle are income protection and mortgage payment protection insurance.