It is the general belief that a number of homes, in excess of two millions, in the entire UK face the dangers of flooding. This flooding could be attributed to many issues like, severe downpour, or very high tides owing to increment weather conditions. Flooding is also known to take place on account of various other accidents like sudden collapse or breaking of water pipes.
However, possible mechanical failure should not be overlooked as a flooding concern. For example, broken pipes could create extensive flooding damage. Understandably, homeowners near the coastline would expect to be affected by flooding, however it is imperative that all homeowners review their policies to ensure adequate flood protection is in place.
During a recent survey, it was found that the British population was grossly underinsured against flooding. The results of this survey are supported by the 52% of consumers affected by flooding in 2006, only to find that their insurance did not cover flooding. Premiums will vary based on level of risk to flooding in your area. Flood maps, created by the Environmental Agency, are utilized by insurance companies to calculate flooding risk. If an area has a 1 in 75 chance or higher of flooding, it is determined to be a high risk area.
Areas with a 1 in 200 chance of flooding are considered low risk. Residences within the high risk area should anticipate paying highly for flood insurance, if coverage is obtainable, while medium to low risk areas could expect a tiered payment scale in line with the amount of flooding risk.
When purchasing insurance of any type, it’s important to do an apples-to-apples comparison of prices, especially if you own a home in a high risk zone. There can be a great variance in premiums and amount of coverage. You can shop for a policy online from the comfort of your home, or you can do research on your own time. You can also visit a specialist insurance broker who will give you quotes for multiple insurance policies to meet your needs. These quotes should include flood damage and will clearly outline what is covered by the policy and what is not.
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 Household Insurance .
