Flooding, risk and my home insurance premium.
The floods experienced in the UK between April and August 2007 were classed as the worst in recent years. The costs to the insurance industry were an estimated 4billion, and ultimately it is the property owners who have to pay via an increase in premiums. Furthermore, with climate change many experts now predict that the number of people in danger of flood damage will rise significantly. Therefore, the 07 floods cannot be taken lightly and it is highly likely that floods will be more regular and affect many more people. The Association of British Insurers (ABI) calculates it to be approximately 5million of us and rising.
When deciding on an insurance policy, there are a number of factors that need to be considered. Having your home destroyed by flood damage is an extremely stressful time, and it pays to have the right type of insurance cover. Unfortunately premiums in high flood risk areas are approximately 3 times higher than the average which means that many under insure to save costs.
Let our team at JSTFinancial help. We can find you the best quote for your circumstances by searching the market and best matching your needs to that policy. We consider all aspects of the policy, and of course we keep our eye on the premium costs as well. For your reference we have compiled a list of what we believe are the most important aspects of your home insurance, and some tips to help you lower those premiums. These are the types of things that JST will be asking our insurance partners, so you can rest easy that we have covered all the major concerns.
• Postal Address-a major factor, and the nearer you are to a known flood risk area, the higher the premium. However, contact your local authority and Environment Agency and enquire about local flood defence schemes. These can help lower your premiums.
• Your category of ‘risk’ is assessed using many criteria, and this varies from insurer to insurer, so although your area may be a flood risk, your particular property may not be. If the entire house is about flood level for example, or it was a top floor flat.
• Try and take precautions yourself. Try installing floor boards or specialist plumbing valves, and buying sandbags, or relocating some of your more valuable items away from the flood risk. Make sure you advise the insurance company as this may help reduce your premiums.
• It is important to assess what, specifically, is covered under your policy. For example, what is the maximum coverage to repair or rebuild my home? Does the policy cover possessions in my house? Is it how much I originally paid for the items or what they are currently worth?
• Also consider the more long term effects of flood damage. For example, what about water damage or mould created by flooding?
• Premium costs and ways to pay.
• Policy excess, generally the higher the contribution that you are prepared to make, the lower your premium will be.
• What if I fail to make my payment on time? Will the policy be cancelled?
• What levels of cover can I choose from?
• How easy is it to claim? Does the insurance company have a reputation for good customer service?
• How quickly does the insurance company settle flood insurance claims?
• Are discounts available if I do anything to "flood-proof" my home and possessions?
• How easy is it to renew?
• What happens if the area in which I live increases or decreases in flood risk? How will it affect my eligibility and premium?
• If I have to make a claim against the policy, can you tell me what will happen to the amount of my premium payments after that? Will they increase?
Let JSTFinancial take the stress out of it all for you, and find you your perfect policy!!