Climate Change – Are You Insuring For An Inundation?
Working with a team of sixty top experts, a recent report by the
Government’s Chief Scientific Adviser, Sir David King, is predicting that
both the number of people in danger from flooding and the costs of damage
from floods will significantly rise over the coming years.
Very few people would deny that climate change is a reality – particularly
those working in insurance, given that the floods that devastated parts of
the UK between April and August 2007 cost the industry £4 billion. This is,
of course, bad news for those who live in areas that are prone to flooding –
and the Association of British Insurers calculates that means 5 million of
us already (and rising).
With so many people at risk from flooding, it is becoming more and more
important to take steps to avoid the worst effects of flood damage to you,
your family and your property. In particularly ‘at risk’ areas, you should
consider installing flood board slots in doorways and keep a stock of
sandbags, and also check if there are other places where water could get in,
like airbricks. You should also find out from your local authority or
The
Environment Agency what the risks are to your property and what flood
prevention schemes are in place locally.
Keep a list of useful numbers by the phone, such as Floodline (0845 988
1188), your insurance company and emergency numbers, and know how to turn
off water, gas and electricity. One rainy Sunday afternoon, why not assess
what possessions may be most at risk on the ground floor, ones which have
most value to you (old photographs? passports? family heirlooms?), and think
about how you would move them to a safer place in an emergency.
Premiums in flood risk areas are presently three times higher than the
average and this, unfortunately, leads some people to under-insure to save
on costs. The Environment Agency makes it clear, however, that this
short-term approach to insurance is a false economy as ‘one of the greatest
causes of stress experienced by people who have flooded is lack of adequate
home insurance’. It is important to check if your contents and buildings
insurance adequately covers against flooding.
Although premiums are likely to be higher in the High Risk flood areas, you
should always shop around as there are some very good value
property
insurance offers around - respected sites such as Fish4 Property, www.comparethemarket.com or www.moneysupermarket.com can compare dozens of
insurers and complex policies for you for nothing and suggest ones that best
suit your needs, consequently saving you time and money.
On-line applications can also save you money – the big supermarkets are in
fierce competition for you to shop on-line with them and
home insurance is
no different - for example ASDA and Marks & Spencer are both currently
offering a 10% discount if you apply on-line.
In summary, the guidance is to remember to tell your insurance company if
your property is at a lesser risk because of the flood measures you or an
outside agency have undertaken, shop around for the best deal, particularly
looking on-line, and finally to ask your insurer to advise you of measures
you could take that could reduce your premium. As The Environment Agency
says ‘Act now. Be prepared for flooding’.
