Flood-hit families may struggle to find cover as water subsides
At-risk properties may be locked into the same insurer or not even be eligible for protection if built after 2009, finds Sam Barker
Flooding has caused disruption for thousands of people across the country, with heavy rain leading to homes being swamped and travel interrupted.
The Environment Agency (EA) has warned more flooding is imminent in 59 areas of the South, Midlands, East and Yorkshire, with another 150 districts at possible risk. It said around 90 properties have been inundated so far – about 60 in the South East and around 30 in Devon and Cornwall.
Homes that flood are left in an uncertain insurance situation, with premiums and excesses likely to rise.
Flood cover is normally included within home insurance policies. Most policies will pay for the cost of drying out and restoring a house, replacing damaged items, alternative accommodation and fees for professionals. At-risk households can take immediate action including moving valuables and electronics away from the floor and setting up sandbags and flood barriers.
A spokesman for the Association of British Insurers said: “If possible, move as much as you can upstairs. Make sure you know exactly where all your important documents are.”
Historically, if a house was in a flood-prone area, insuring it was either expensive or impossible. Affordable cover is now available for most after insurers and the Government set up Flood Re. Insurers pass the cost of flood insurance into a pool that spreads the risk and reduces prices.
However, houses built after Jan 1 2009, buy-to-let properties and businesses are not part of the scheme. Owners still struggle to get flood cover, although specialist brokers can help.
Households that are part of Flood Re protection may have to keep their policy with the same provider following a flood claim. This is because existing insurers are bound to provide affordable cover after a house is affected, but a new provider does not and can charge higher premiums.
Fully comprehensive car insurance policies will pay out for flood damage to vehicles, but generally not for items kept inside. Some insurers will reject claims for avoidable damage or if a motorist drove into flood water they could have bypassed.