Saturday, December 1, 2012

Flood insurance will be affordable in the future


ALL of the news this November has been about flooding and how the Association of British Insurers and the Government cannot agree on an affordable way of selling flood insurance in the future. Do not panic, you will be able to buy flood risk insurance and this is your guide on how to get it at the best price.

The ABI and Government is likely to come to some sort of agreement on the now outgoing Statement of Principles that covers flood insurance currently. What the shape of that will be is not determined yet but is likely to be a fudge of some description. Insurers will not cover bad risks and the Government cannot force them to do so. In fact if the Government does force them to do so then I anticipate lots of insurers will move out of offering the service entirely as they will not want to take the risk.

Alternatively the Government could legislate that the costs are borne by all home insurance provision, which would skyrocket the price for non-flood affected homes. And as home insurance is non-compulsory, customers will abandon having any insurance at all.

No, forget the ABI and Government for now and go back to basic economics. Whatever happens, there is a demand in the UK for insurance to cover flood risk for homes. That means good specialist insurers and brokers will know there is a market and they will become sharper at the services they provide.

Ultimately the risk may be high for the broker but they will advise you how to mitigate that risk and reduce the cost of your insurance. That may mean having flood counter-measures built into your property such as gates to a certain height to waterproof entrances if a flood occurs. But that fact is that they and you need to take reasonable steps to protect your property, just the same way you need to lock your doors when you leave home to guard against theft.

The specialist niche insurers and brokers will take over on providing flooding insurance and then they will start to compete with each other for your business. This is something that The Property Insurer does already ? it takes your brief details (less than two-minutes to fill in the online form) and then passes it to the three best flood insurers in the UK. They then fight for your business and that is good as it pushes down prices. This will continue in 2013 and our brokers are clambering for more flood insurance business ? they know it is a growing market and is poorly served right now.

Don?t panic, visit www.thepropertyinsurer.co.uk now and we can help.

Jason McClean

The Property Insurer

Published Date: 29th November 2012
Category: General

Source: http://www.thepropertyinsurer.co.uk/blog/general/flood-insurance-affordable-future/

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