5 Nov

Flooding to raise home insurance premiums

Flooding to raise home insurance premiums

Home owners residing in areas of high flood risks are set to face increasingly punitive home insurance payments, it has been predicted.

Of 200 insurance professionals conducted by the Computer Science Corporation (CSC) for its research, some 90 per cent said they expected home insurance costs to increase in those areas worst hit by the summer's floods.

Meanwhile, further upward pressure on insurance premiums will come from the abandonment of the current policy whereby householders in safe areas subsidise the cost of insurance for those in at-risk regions, according to 61 per cent of the insurance experts questioned.

John Maitz, vice president at CSC, told the Reuters news agency: "For households on flood plains these developments augur very poorly indeed."

Recent statistics show that around 2.2 million Britons live in homes in areas with a high likelihood of flooding.

Flooding over the summer cost insurers up to £3 billion in payouts to cover the damage caused, according to figures from the Association of British Insurers.

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