Global Warming Affects Home Insurance

Last years storms were a prime example of this.during designs of flood defences, and for building
During 2007 more then 1.5 million British homes’regulations to be changed so properties are more
roofs were damaged due to high winds, which causedresistant to extreme weather. They also warn that its
£4.5 billion of damage. The report undertaken bynot just home insurance which may be affected by
Halifax Home Insurance quoted the average cost ofclimate change. Motor insurance could be hit with
wind damage reached £2,800. Damaged gardens,extreme weather leading to more accidents.
sheds and destroyed garden furniture were all claimedJohn Parker, head of general insurance at the ABI, said
on owners’ home insurance policies.“Managing risk is central to our industry, and insures
Wind damage can often lead to future costs ifmust be equipped to analyse the new risks arising
homeowners do not take immediate action.from climate change, and to help customers protect
Martyn Foulds, senior claims manager, said, “It isagainst them.”
advisable for homeowners to conduct a thoroughLast Years major floods, and the repeat incident earlier
inspection from ground level following high winds, thethis year has brought flood insurance to the forefront
problem could be exacerbated by water coming inof peoples minds. For many people, flooding is a fact
through missing or broken tiles.”of life. There are more than 2 million homes at risk
Climate change will increase the number of dangerousfrom coastal or inland flooding (10 % of total homes in
weather conditions, and homeowners need to preparethe UK), and around 400,000 homes at very high risk
for future storms by evaluating the existing homeof flooding. Climate change will increase winter rainfall,
insurance. Even with the damaging recent storms, 36%the frequency of heavy rainfall, and sea levels and
of homes are not insured. Advice has been given forstorm surge heights. With no change in Government
homeowners to prepare their homes by securing lawnpolicies or spending, climate change could increase the
furniture, and checking, trees, gutters, tiles and roofs.number of properties at risk of flooding to 3.5 million.
They should also ensure they are adequately insuredIn the modern competitive insurance market, premiums
for any foreseeable problem.reflect the risks that customers face. This enables
There are often long delays for insurance payoffsinsurance to be offered at very competitive prices to
after major incidents, so insures are recommendingcustomers living in low flood risk areas.
having an emergency repair fund to make necessaryPreparation is key, with homeowners needing to
repairs and prevent further damage whilst awaiting theevaluate their existing home insurance premium, and
insurance payout.with the vast number of insurance companies offering
The Association of British Insurers (ABI) warns that ifcheaper deals and vying for your money then you
nothing is done then the current value of claims couldshould shop around and find the best deal which will
double or even triple by the middle of the century. Thecover all possible incidents which could affect your
ABI wants climate change to be taken into accountparticular home in the unpredictable future.