In Floods Because of Excessive Insurance

Extreme weather doesn't happen very often in the UKdone detailing the flood defences done on their home.
but when it does, it's an insurer's perfect excuse to putThis isn't an isolated incident. Many other householders
the prices up. After a flood, hurricane or any other boutin flood-stricken areas are up in arms over their
of extreme bad weather and premiums rise quickerrenewal details, with most of them showing substantial
than a farmhouse in a twister.price hikes in both the premium and the excess. It's not
The floods which occurred in 2007 across the UK arejust home insurance which is affected in this way by
the latest to make waves in the world of insurance.the floods; the insurance companies of several small
Many insurers are now refusing premiums tobusinesses have raised the premiums too, in some
householders who are deemed at flood risk - even ifcases by as much as 5 percent. This problem is only
they haven't yet made a claim. Other companies areset to get worse as many of the new housing and
charging ridiculously high premiums and excesses tobusiness developments planned over the next few
flood-risk victims.years are to be built in flood risk areas, meaning that
One couple who lost most of their belongings in theanyone buying one of these brand-new structures will
flood last year have been informed by their insurer thatlikely face higher than average premiums on their
their flood excess, previously £50, will now risebuilding and contents insurance. This is despite advice
to a whopping £25,000. This may be reduced iffrom Environmental Health about the dangers of
they pay up to £1000 to have a written reportflooding in these areas.