People living in areas at risk of flooding have been urged to act quickly before their homes potentially become uninsurable. Simon Douglas, director of AA Insurance, said the insurance industry is becoming concerned at the growing number of claims resulting from extreme weather: according to the AA British Insurance Premium Index, home buildings premiums in the UK rose by 9.5 per cent last year, while the cost of contents cover rise by 11.2 per cent.
Currently, flood-prone homes can be insured because of a subsidy agreement between the government and the insurance industry, but this is due to come to an end in July 2013. “Some insurers are telling us that flood-prone homeowners might not be able to renew their cover later this year, because their new policy will extend beyond 1 July 2013: with all the implications for property value and mortgage availability that this implies,” said Mr Douglas.
People who find themselves unable to insure their homes may be able to arrange a quick home sale with a property buying firm to get themselves out of their predicament, allowing them to gain access to the money tied up in their property and relocate to a lower-risk area.
