Insurance " Flood Risk "
The risk of flooding is real for at least 5 million homeowners in the United Kingdom. These homeowners may face difficulties from the devaluation of their properties, but also in adequately and affordably insuring their properties against flood damage. Some properties in particularly high risk areas may be uninsurable as far as insurance companies are concerned. This leads to obvious problems in mortgaging such properties, with buildings insurance a prerequisite, and even when insurance is considered, it may come at a premium of 50%, or 60%, when compared with properties of standard risk. Home insurance excess levels are also likely to be much higher and may run into thousands of pounds.
The good news for potential homeowners, however, is that the Environment Agency now maintains a flood risk map of England and Wales. It's available to insurance companies and members of the general public. The level of risk apportioned to any address can be assessed accurately, rather than relying on postcode alone. The Environment Agency also provides an online flood warning service, which provides details of any flood warnings currently in force by region and severity.
If you are intending to buy a property in a flood plain area, it may be advisable, in the first instance, to ask the current owner about existing home insurance arrangements and to obtain a quote from the same insurer, who you know is willing to provide cover. Furthermore, it is also worth checking with the local council whether there any plans to implement, or upgrade, flood defences in the area where your chosen property is located. If there are, this may not only allow you peace of mind, although even the best flood defence cannot be guaranteed 100% effective, but may also result in a substantial reduction in your home insurance premium.
The risk of flooding is real for at least 5 million homeowners in the United Kingdom. These homeowners may face difficulties from the devaluation of their properties, but also in adequately and affordably insuring their properties against flood damage. Some properties in particularly high risk areas may be uninsurable as far as insurance companies are concerned. This leads to obvious problems in mortgaging such properties, with buildings insurance a prerequisite, and even when insurance is considered, it may come at a premium of 50%, or 60%, when compared with properties of standard risk. Home insurance excess levels are also likely to be much higher and may run into thousands of pounds.
The good news for potential homeowners, however, is that the Environment Agency now maintains a flood risk map of England and Wales. It's available to insurance companies and members of the general public. The level of risk apportioned to any address can be assessed accurately, rather than relying on postcode alone. The Environment Agency also provides an online flood warning service, which provides details of any flood warnings currently in force by region and severity.
If you are intending to buy a property in a flood plain area, it may be advisable, in the first instance, to ask the current owner about existing home insurance arrangements and to obtain a quote from the same insurer, who you know is willing to provide cover. Furthermore, it is also worth checking with the local council whether there any plans to implement, or upgrade, flood defences in the area where your chosen property is located. If there are, this may not only allow you peace of mind, although even the best flood defence cannot be guaranteed 100% effective, but may also result in a substantial reduction in your home insurance premium.
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