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Axa Warns Of House Market Ruin

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Man selling things warns of bad things if his things are not bought.

I live on a flood plain! I have no problem with insurance, because "I am

lucky"! :blink:

Edited by MrPin

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What gets me is why did they build on the flood plains in the first place?

It's not like they were not known about was it? Maybe it is a once in a lifetime event but if a river has a floodplain then it is reasonable to assume that at some point it is going to flood!!

The insurers shot themselves in the foot here. If they had hiked premiums from the get go on these places instead of chasing the profit and bonuses then there may not have been the same sort of appetitite amongst the builders to build on the dodgy land in the first place.

Instead we have have home owners who bought and insurers queing up for the next taxpayer bail out.

Only a temporary extension of the current deal could allow homeowners to avoid annual premiums reaching unaffordable levels of £30,000 or see their homes left without cover. Paul Evans, AXA UK’s group chief executive, warned that this would mean families would not be able to obtain mortgages.
:o:o:o

What happens to the mortgage if the home-owner fails to insure because he cannot afford it?

Do we know how many people this affects? Maybe if not too an insignificant number the Government will cast them off?

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It goes something like this

Axa issues 'press release'

BBC et al transform 'press release' into scaremongering piece. Demand government 'do something' to subsidize cost of insurance in these areas.

Government respond, lest the BBC convince people 'they dont care'

Axa recieves subsidy. Everyone else's premiums go up anyway.

Axa very happy.

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What gets me is why did they build on the flood plains in the first place?

It's not like they were not known about was it? Maybe it is a once in a lifetime event but if a river has a floodplain then it is reasonable to assume that at some point it is going to flood!!

The insurers shot themselves in the foot here. If they had hiked premiums from the get go on these places instead of chasing the profit and bonuses then there may not have been the same sort of appetitite amongst the builders to build on the dodgy land in the first place.

Instead we have have home owners who bought and insurers queing up for the next taxpayer bail out.

:o:o:o

What happens to the mortgage if the home-owner fails to insure because he cannot afford it?

Do we know how many people this affects? Maybe if not too an insignificant number the Government will cast them off?

They build upon flood plains because that's the only place they are allowed to build! Decades of NIMBYism and local council beaurocracy/bribes has meant that it is impossible to build in a village or extend a town now all the infill sites have been, er, filled in so those big empty fields beside the river start to look attractive...

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They build upon flood plains because that's the only place they are allowed to build! Decades of NIMBYism and local council beaurocracy/bribes has meant that it is impossible to build in a village or extend a town now all the infill sites have been, er, filled in so those big empty fields beside the river start to look attractive...

Land cheaper on flood plain.........so cheaper houses for all!!!........or more profit for jerry builders. Guess which?

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No amount of paper wizardry, actuarial insurance formulas, financial instruments can ever, ever stop water flowing onto a flood plain. Back I say, In my hand I'm holding a piece of paper....!

neville-chamberlai_1000460c.jpg

I think King Canute also described it well.

canute%5B1%5D.jpg

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Once you remove all the houses on the flood plains from the supply you end up with a smaller number of actually inhabitable houses.

As a result the actually good houses that don't flood are worth more (smaller supply you see for same demand).

So while the price of houses on the flood plain may crash if sea levels rise then the price of the rest will rise.

The insurers can tax those of us smart enough to not buy on a flood plain to pay the claims of those who do, so it all balances out...

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  • 243 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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