Flood plains cause big excesses

Those living near floodplains should expect to pay big excesses on their home insurance, according to a Which? report released earlier this week*.

Despite the current period of hot and sunny weather, research shows that 1 in 10 UK homes are at the risk of flooding, which could result in many people being left out of pocket.

Homeowners must tell an insurer, to the best of their knowledge, whether they live in a flood risk area. If this information is not provided, an insurance claim could be made invalid.

However, Malcolm Tarling of the Association of British Insurers (ABI) said that most people should still be able to get some form of flood cover from their insurer. “We have an industry wide statement of principles in place that means that insurers will continue to offer cover to existing policyholders who have been flooded before where that flood risk is being managed.”

Some homeowners may also be receiving misleading information about their level of flood risk. While some insurance providers use postcode information to discover the potential for flooding, others are starting to use more advanced tools which give a more accurate representation.

These advanced tools include special maps which show properties in relation to rivers, canals, and other sources of water. To check how at risk your home is of flooding, you can do so on the Environment Agency's flood map.

Insurers are recommending that homeowners continue to seek home insurance for their properties even if they believe they are at risk of flooding, in order to secure their building and contents in case of flood, theft or other incident.

*Source: The Guardian, at http://www.guardian.co.uk/money/2010/jun/24/home-insurance-floodplain