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Uk House Insurance Premiums To Rise Dramatically As Climate Change Increases Flood Risk

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http://www.guardian.co.uk/business/2010/jul/28/house-insurance-premiums-flooding

Climate change will increase the risk of flooding in the UK, which could lead to dramatic rises in insurance premiums for homeowners and businesses and make some areas of the country uninsurable, the Association of British Insurers has warned.

"Flood risk is the main catastrophic risk in the UK and we know that climate change will bring increased flood risk to the UK," said Nick Starling, director of general insurance and health at the ABI.

He said the pattern and nature of floods in recent years suggested that global warming was starting to have an impact: the severe floods in the summer of 2007 and the Cumbrian floods last year were caused by heavy downpours that did not dissipate.

"What our members are concerned about is the increase in areas of flood risk so that some areas may become impossible to insure," he added. He pointed to some "frankly daft planning decisions" where new homes were being built on flood plains.

The insurance industry has already warned that it may not insure new developments in flood plains if the properties were granted planning approval against Environment Agency advice.

The agency estimates that one in six homes in England and Wales are at risk of flooding. A spokesman said: "The latest UK climate change data shows this will increase in future due to rising sea levels and more frequent and heavy storms. Since the 2007 floods, the Environment Agency has completed 158 schemes and increased protection to 128,000 properties."

The ABI's forecast modelling shows that if temperatures rise by 2C, average annual insurance losses would go up by £47m and the risk of a once-in-a-century event would increase by £769m, which could push up the price of insurance by 16%. A temperature rise of 4C is estimated to increase annual losses by £80m and premiums could go up by 27%, while an increase of 6C would lead to additional annual insurance losses of £138m, pushing up prices by 47%.

Starling argues that while public spending is being squeezed, cutting back on investment in flood defences would be a false economy. "Damage done to schools and hospitals, not to mention homes and businesses, can cost billions to repair. For every £1 spent on protecting communities from the devastating impact of floods, £8 is saved to the economy," he will tell the Local Government Flood Forum on Thursday.

The 2007 floods, which hit Northern Ireland, Yorkshire, the Midlands, Gloucestershire, Worcestershire, Oxfordshire, Berkshire and South Wales, cost the insurance industry £3bn while the Cumbrian floods last November led to property and motor insurance claims worth £200m.

"We all want flood insurance to continue to be widely available and competitively priced beyond 2013," says Starling. "But for this to happen we need the government to keep to its pledge, under our agreement, to deliver a long-term flood management strategy backed by the right level of investment. This must include robust planning decisions, so that new homes are not built in areas at high risk of flooding."

I know that these stories keep popping up from the insurance industry, considering the economic state of the economy it seems likely that large areas will become uneconomic to insure. Still I'm sure house prices in those areas can only go up.

How many houses are currently under construction on flood plains and how much are they going for?

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climate change and increased costs do seem to go hand in hand, somehow. it's a very big stick

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Oh Yess!

I had my Contents only policy with Churchill. They raised the premium this year from £85 to £120. I switched to Aviva for £99.

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Insurance companies are thieves. Anyone who lives in a flood prone zone will find it expensive or impossible to get insurance for flooding. Insurance are not in the business of risk because they eliminate it.

How can they argue for increased premiums when they refuse to insure large numbers of households.

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Insurance companies are thieves. Anyone who lives in a flood prone zone will find it expensive or impossible to get insurance for flooding. Insurance are not in the business of risk because they eliminate it.

How can they argue for increased premiums when they refuse to insure large numbers of households.

Didn't Brown agree to underwrite premiums in flood plains? Aren't we handing over lots of cash to insurance companies already... they charge you a ludicrous premium but then get it topped up - for their risk - by Brown... I mean our taxes?

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Insurance companies are thieves. ...

Don't deal with them then. No-one makes you insure anything other than third party liability for your car.

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Don't deal with them then. No-one makes you insure anything other than third party liability for your car.

This is true.....though I guess you have to insure the bank's property if you have a mortgage.

Otherwise self insure, the odds are on your side.

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Don't deal with them then. No-one makes you insure anything other than third party liability for your car.

I wish it was that simple, you need building and contents for a mortgage these days and most now insist on life cover. The third party motor insurance you talk about is now so expensive that most kids who pass their test can't afford to drive, hence the growing number of unisured drivers. My first car was an MK2 RS2000 which cost me about £90.00 back in 1980. The same car would cost over £2000.00 to insure at 18 these days. If insurance companies don't like the risk then they simply make it impossible for you to get insurance.

This is the reason why we never want a private healthcare system as the moment the map human DNA to disease then certain people will never get insurance.....we only insure people that don't get ill (i.e cost us money).

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I wish it was that simple, you need building and contents for a mortgage these days and most now insist on life cover. The third party motor insurance you talk about is now so expensive that most kids who pass their test can't afford to drive, hence the growing number of unisured drivers. My first car was an MK2 RS2000 which cost me about £90.00 back in 1980. The same car would cost over £2000.00 to insure at 18 these days. If insurance companies don't like the risk then they simply make it impossible for you to get insurance.

This is the reason why we never want a private healthcare system as the moment the map human DNA to disease then certain people will never get insurance.....we only insure people that don't get ill (i.e cost us money).

rent house, travel by bicycle and public transport.

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This is the reason why we never want a private healthcare system as the moment the map human DNA to disease then certain people will never get insurance.....we only insure people that don't get ill (i.e cost us money).

Well, duh; insurance is supposed to cover unexpected events, not flooding when you build your house in a flood plain, or getting cancer when you're genetically predisposed to do so.

You, of course, are free to start your own insurance company which will insure people for things that are very likely to happen; let us know how it goes.

BTW, isn't at least part of the increasing cost for motoring insurance because Labour offloaded a lot of costs onto the motorist? I thought they changed the law so that the NHS could sue for injury costs, etc?

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rent house, travel by bicycle and public transport.

Then we can be just like China!! :)

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I wish it was that simple, you need building and contents for a mortgage these days and most now insist on life cover. The third party motor insurance you talk about is now so expensive that most kids who pass their test can't afford to drive, hence the growing number of unisured drivers. My first car was an MK2 RS2000 which cost me about £90.00 back in 1980. The same car would cost over £2000.00 to insure at 18 these days. If insurance companies don't like the risk then they simply make it impossible for you to get insurance.

This is the reason why we never want a private healthcare system as the moment the map human DNA to disease then certain people will never get insurance.....we only insure people that don't get ill (i.e cost us money).

Private companies have an incentive to drive up the cost of insuring. Because their profits are a percentage of the revenues. So they are always fighting for more liabilities and legal risks, with their tag team partners the legal system.

If I was in charge there would be a national insurance company, who also administered and awarded damages. And the decisions by that administrative body would not be contestable in court.

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Private companies have an incentive to drive up the cost of insuring. Because their profits are a percentage of the revenues. So they are always fighting for more liabilities and legal risks, with their tag team partners the legal system.

If I was in charge there would be a national insurance company, who also administered and awarded damages. And the decisions by that administrative body would not be contestable in court.

i think its safe to say if you were in charge with your comedy monetary policies the popn of the UK would be about 1, maybe 2 if there is a Mrs aa3 so insurance wouldnt matter :D

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I wish it was that simple, you need building and contents for a mortgage these days and most now insist on life cover. The third party motor insurance you talk about is now so expensive that most kids who pass their test can't afford to drive, hence the growing number of unisured drivers. My first car was an MK2 RS2000 which cost me about £90.00 back in 1980. The same car would cost over £2000.00 to insure at 18 these days. If insurance companies don't like the risk then they simply make it impossible for you to get insurance.

This is the reason why we never want a private healthcare system as the moment the map human DNA to disease then certain people will never get insurance.....we only insure people that don't get ill (i.e cost us money).

Yes but presumably (ultimately) these people won't need insurance as they they know they are less likely to disease.

If risk is reduced then there is less need for insurance.

?

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Climate change could also decrease flood risk. We've seen recently that local climate is impossible to forecast. The Met Office refuse to do seasonal forecasts for this reason.

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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