Sep 01
Property Insurance Rising for Flood-Risk English Homes
Because of the changing climates and tumultuous weather, insurance companies in England are beginning to raise their property insurance rates for homes in areas with a high risk of flood. Not only that, but some insurance companies are raising their price for all of their customers, in addition to flood-risk homes, in order to cover their losses. In some heavily flooded areas, some customers will even be blacklisted from receiving property insurance at all.
So far, floods have cost insurers around £3.3billion, raising the chance of beefed-up insurance prices for customers. Although, in most cases, all households will see an increase in premiums, those that have a high risk of flooding will see bigger increases.
Due to an informal agreement with the government, insurers are required to continue offering plans to current customers. Their way around insuring them is to raise prices until their customer’s can’t afford the service.
Customers of Norwich Union, the first insurer to raise premiums, will end up seeing an increase of 10 percent when it comes time to renew their policies. Other companies, such as Royal Bank of Scotland and Lloyds TBS may soon be following suit.
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