Home Owners In Flood Risk Area’s Will Struggle To Insure Their Homes

Jan. 31, 2012 - PRLog -- The ‘Statement Of Principles’ contract ensures that flood prone properties will still be offered insurance, but it expires in July 1st 2013, and there is no certainty that any protection will replace it.

Simon Douglas (Director of AA Insurance) believes there are approx. 5.2 million families living in homes at risk from flooding these home owners may not be able to renew their current Home Insurance policy later this year, if the expiry date goes beyond July 2013 (source: Telegraph) – which means that this significant issue is set to become apparent sooner rather than later.

Hayley Connolly of Home Shield Insurance Services believes that the government should be taking action by now, ‘Flood Protection has never been given the funding or priority it requires, there are some very vulnerable areas which need better flood defenses.  Homeowners in these areas are finding that the value of their homes is already affected by the flood risks, but when they can no longer insure their properties – the value may plummet further.  Some mortgage lenders insist on Buildings Insurance being in place to satisfy the terms and conditions of a mortgage – I wonder where these vulnerable families will stand then? Is this an opportunity for Insurance Providers to increase the cost of Buildings Insurance in these areas to record levels?  Will we see an increase in bespoke policies designed specifically for these ‘at risk’ properties, which automatically carries huge price tags?  People want the government to take decisive action now, to ensure that their homes are protected’.

Reports out today suggest that there are in excess of 200,000 properties in danger of being uninsurable.  Home Shield Insurance suggest that you consult the Flood Maps that are available from the Environmental Agency if you are concerned your property may be affected.

Home Shield Insurance offers a wide range of Insurance products from a panel of reputable and well known Insurance providers - Flood Protection is still available on all insurance contracts.

http://www.hsinsurance.co.uk

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Home Shield Insurance are an independent UK based Insurance broker specialising in Life Insurance, Mortgage Payment Protection and Business Protection. We offer a Dedicated Adviser service to all of our clients and are proud to be unique.