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Flooded Britons Face Rising Insurance Premiums

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http://www.telegraph.co.uk/finance/personalfinance/insurance/buildingsandcontent/10550182/Flooded-Britons-face-rising-insurance-premiums.html

Owners who suffer flooding this winter are being reassured that their properties will still be covered by insurers in the coming months – but they may face increased premiums.

Insurers are obliged to continue to offer flood insurance to existing customers, said the Association of British Insurers, but there is nothing to prevent costs from shooting up.

“Insurers will do everything they can to help customers recover from flooding and ensure flood insurance remains widely available,” said a spokesman for the association. “They will continue to offer flood cover to their customers at renewal, but the price charged will have to reflect the risk.”

Clearly those with housing above the flood plains should be taxed?

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People amazed rivers can flood and demand something be done.

Same mass of people no doubt amazed interest only mortgage does not pay off house at end of term.

Expectation state must act to protect them from themselves is staggering.

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Apparently insurers also charge more if you have more car accidents than other people too! :o:o:o:o:o

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People amazed rivers can flood and demand something be done.

Same mass of people no doubt amazed interest only mortgage does not pay off house at end of term.

Expectation state must act to protect them from themselves is staggering.

It's the same people who want the green belt and farm land protected from building. Most of the old settlements and built up areas are historically by rivers (Themes for example). The greenbelt and others they won't allow you to build are usually far away from rivers.

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When the scheme was announced in June last year, householders were promised there would be no increase in bills in general.

Same as adding green charges on energy bills - increase in bills somehow came as a shock.

Crap

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It's the same people who want the green belt and farm land protected from building. Most of the old settlements and built up areas are historically by rivers (Themes for example). The greenbelt and others they won't allow you to build are usually far away from rivers.

Very good point, i'd not thought of that.

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why should the 'prone to flood' not have higher premiums - they are a higher risk

by the same token - I live in a very mundane Grade 2 Listed black and white cottage - for which I have to pay enhanced premiums for buildings and contents precisely because of that. - seems fair to me as it is my choice and the cost of repair would be higher. the good news is - I am on a hill so flooding not a risk. :D

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why should the 'prone to flood' not have higher premiums - they are a higher risk

by the same token - I live in a very mundane Grade 2 Listed black and white cottage - for which I have to pay enhanced premiums for buildings and contents precisely because of that. - seems fair to me as it is my choice and the cost of repair would be higher. the good news is - I am on a hill so flooding not a risk. :D

Yes, but insurance companies are prone to going mental on higher risk stuff. You may remember the £20 - £30k insurance premiums on hot hatches in the late 80s. Basically they see something as high risk and throw the normal pricing rules out of the window and add a vast mark-up because they don't really want the business.

That's fine if it's a car - you just don't buy that one - but if you're living somewhere that floods then you're a bit stuck.

What you want is fair pricing for flood risk, and if you put a higher excess on then you can make it affordable.

I've had personal experience of this as one insurer quoted me a stupid price because of my as-the-crow-flies proximity to water. That there is a vertical dimension to the real world (i.e. if I'm flooded then pretty much the whole South East will already be underwater) was not something that their systems were set up for so they quoted a prohibitive price for business that they didn't want.

So some sort of government ABI intervention is required to make insurance companies do their job, and particularly their ratings, properly.

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People amazed rivers can flood and demand something be done.

Caravans parked inches away from the sea get wet. Shock horror.

Demands that flood defences be built.

Well the best flood defence is to not live in the path of moving water.

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I suppose it also reflects the inability or unwillingness to adapt to changes in circumstances. Perhaps flood risk was underpriced in the past and it is overpriced now, perhaps those once a century events are now once a generation in some parts of the country. Development upstream can have a dramatic effect further down if not designed with these impacts in mind.

Perhaps some people whose homes are much more likely to flood now than previously are in a bit of denial about the viability of insurance if it means replacing contents every 30 years or so. The quotes are obviously going to be very high in those circumstances.

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Well the best flood defence is to not live in the path of moving water.

We have been the victims of a postcode lottery for car insurance since I can remember, despite vehicle security improving to the point where cars have become nay on impossible to steal without the key. However, I have always expected my premiums to be proportionate to the 'pay out pot'. Over the last two years, my premiums have started to come down, as the insurance co's cannot backup their claims of higher crime for higher rates.

Mother nature is a different animal which cannot be influenced. and the insurance contribution should be proportionate to the risk, otherwise you are consistently expecting others to subsidize your expected loss.

Never been able to get my head around those people who live in tornado paths...

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We have been the victims of a postcode lottery for car insurance since I can remember, despite vehicle security improving to the point where cars have become nay on impossible to steal without the key. However, I have always expected my premiums to be proportionate to the 'pay out pot'. Over the last two years, my premiums have started to come down, as the insurance co's cannot backup their claims of higher crime for higher rates.

Mother nature is a different animal which cannot be influenced. and the insurance contribution should be proportionate to the risk, otherwise you are consistently expecting others to subsidize your expected loss.

Never been able to get my head around those people who live in tornado paths...

Most people who live in areas prone to tornadoes never see one, let alone experience insurable loss. Living in Yalding is a much better way to reliably ruin your posessions than upping sticks to Kansas.

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The discounted increases of the premium is not incorporated into a discounted property price? I don't want to pay a premium for a place that will flood. Also if my solicitor points out this place will flood every few years thats food for thought. Me I wouldn't buy there but listening to a Yalding interviewee they mentioned some kind of assurance/ guarantee. Is this the UK gov scheme?

I am quite close to Yalding.

Edited by Ash4781

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Wait until fracking really gets going

http://stopfyldefracking.org.uk/latest-news/further-update-on-property-insurance-and-potential-damage-caused-by-fracking/

At least with flooding there is historical data , or even just look at a flood risk map...Fracking is a real leap of into the dark ...And now the government may now authorise pipe strings to be run under your house,legally, without even the need of notification to the property owner.

Fracking is going to be classed as an "excluded peril" ,quite how you could differentiate on a claim for natural subsidence when there is a fracking pad within a few kilometres away is going to be an interesting challenge.

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Talking about this with an old friend who worked for one of the big Utilities 20 years ago. He said you could dig down six feet before you hit water and had to bring in the pumps. In the same area it is now two feet. Rising water table, so the water has nowhere to go..

Edit: The wise man built his house upon the rocks

Edited by Jail Them All

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