Flood Insurance Rates

A projected two million plus homes in the UK could be at risk for flooding. This projection is based on potential inclement weather conditions, such as heavy rainfall or high tides.

Though some places undergo more devastation as compared to others, like the ones closer to the sea shore, it becomes essential that you thoroughly make sure that you are not affected by the aftermath of a flood. Latest studies have revealed that many British residents, in excess of 50%, were not satisfactorily insured against flooding. In the year of 2006 alone, as per statistics available, approximately 52% of residents ravaged by floods were not insured.

Now coming to the point, all those people who reside in acute danger-prone places are obviously expected to pay a higher premium as compared to those who reside in less-dangerous places. You are assumed o be living in higher danger-prone place, in case there is a 1:75 probability and if the said ratio is 1:200, then you are deemed to be living in less-dangerous place. This statistic is employed by insurance companies which have been taken from a flood map that was primarily created by the Environmental Agency. People living in low-danger and medium-danger places, should manage to obtain flood insurance at some rate, but for all those who happen to live in highly dangerous places, getting a flood insurance would be out of question.

People who own homes in high risk areas should take it upon themselves to minimize flooding damage. Taking initiative in protecting your own home will greatly reduce the chances of damage in the vent of flooding. There are special products available to help minimize risk. In applying for a policy, the insurance company might ask homeowners to purchase and install these products.

As a homeowner with flooding risk, the expectation is that all prevention measures are taken to guard against flooding. Insurance companies may require that products designed to prevent flooding are purchased and installed prior to review of an application. All homeowners, but particularly high risk owners, will benefit greatly by shopping around for insurance as the cost can vary greatly by company.

Some companies use postcodes to assess the risk of your property. They look at your postcode and compare it to the list of areas considered to be high risk zones. This method can misrepresent the risk of your particular property and you may be over paying! Shopping around and comparing policies allows you to find the best coverage at the best premium.

Graham McKenzie is the syndication coordinator a leading South African Insurance information portal, which amongst others specialises in Car Insurance.