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Another Hpi Nail?!


PopGun
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Anecdotal., no back up story link yet I’m afraid.

Has anyone else heard anything about companies declining home insurance to houses that have been previously flooded?!

I’m hearing more and more stories of people buying (or planning to buy) houses, which insurers won’t touch with a bargepole. That’s got to hurt the resale value. May also help to explain the amount of houses that seem to flip from SSTC to FOR SALE and back.

If this trend continues, i bet those who (fraudulently) claimed for flood repairs they didn’t really need just to get a new kitchen will feel a bit stupid.

Edited by PopGun
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There's this:

RESIDENTS across East Yorkshire have spoken of their fears after being told they may lose flooding insurance cover. The Association Of British Insurers (ABI) has warned thousands of homeowners in the region face being blacklisted again by insurance firms as not enough is being done to prevent a repeat of the 2007 floods.

And this (a random PR, so I'm not sure how reliable it is):

After the floods in 2007 there was a great deal of concern that because of the huge claims and losses being faced by the insurance industry that cover for flood risk would no longer be available in areas affected by flooding. Fortunately the Association of British Insurers and the government agreed a statement of principals and this ensured that cover would be maintained for existing properties (not new properties) until June 2013. This statement of principals is now not going to be renewed and that the availability of flood risk cover being an automatic part of general property insurance may be denied British property owners.

...

The situation for the homeowner is extremely serious. Whilst the Environment Agency have made it clear that 1 in 6 of all homes in at risk from flooding from rivers and estuaries. When surface water flooding or pluvial flooding is considered this rises to as high as 9 million homes. This is 35% of the UK housing stock.

If the average price of a home is £200,000 then it is not unreasonable to suggest that £18 trillion of property assets are at stake. This is because if insurance is not available there is no clear certainty that mortgages will be. Quickly we will see the evolution of flood ghettos in our urban heartlands affecting rich and poor alike.

Even if it is assumed that a 20% reduction in value occurs because for the fact that insurance is not available at economic cost this amounts to £3.6 trillion of lost property value an awful lot of voters will be affected by this!

Edited by sarahleyburn
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The Environment Agency have some terribly helpful suggestions

http://www.environment-agency.gov.uk/homeandleisure/floods/31654.aspx

Especially this bit:

Struggling to get insurance?

If you are finding it difficult to get insurance you could try:

Talking to one of the brokers who specialise in properties that are difficult to insure. You should be able to find these brokers in the Yellow Pages. You can also find a broker on the British Insurance Brokers' Association website or by calling its broker helpline on 0870 950 1790.

Contacting the ABI. They can provide you with details of possible insurers.

Contacting the National Flood Forum (NFF) which may also be able to help. The NFF is an independent, grassroots organisation, which offers support to those affected by flooding. For more information, visit the National Flood Forum website or contact the National Flood Forum on 01299 403055.

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