Living In A Flood Risk Area- The Disadvantages
John Paige
When moving into or building a home within of the high risk flood zones of the UK, you accept with that choice a number of consequences. A flood can strike at any time, with or without warning, and you must always be prepared for one to strike. The other downside to having a residence in these areas is the higher premiums that inevitably come with your flood insurance.
Insurance companies are becoming hesitant to give insurance policies to houses located on flood risk areas because it can not have escaped every one's attention that parts of the United Kingdom were severely devastated by floods in 2006 and 2007. This will affect insurance providers too because if everybody suddenly files for a flood insurance claim, either they will have to raise all the insurance premiums or they will close shop before the year ends.
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.
Facing literally millions of pounds of flood damage claims from the recent devastating floods, many policies will likely not be offered the option for renewal by the companies who provide them, particularly the the covered home was hit by or located near the recent flooding.
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 have been a victim of the recent flooding in the UK, and have seen your hard-earned properties and possessions get destroyed before your eyes, calling the flood insurance companies to get a cover policy may not be the wisest move. Your chance of getting one is very remote as the insurance companies are still suffering from the sting of the countless flood damage claims filed before their offices.
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.
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