FLOOD insurance is a fast changing part of the industry in the UK as climate change and extreme weather visits floods upon various parts of the country every year with impunity. So knowing whether you need flood insurance is becoming a bit harder and a bit more important. This guide is designed to help you figure it all out.
First thing is if you have ever flooded before then you will need to find specialist flood insurance in order to get decent insurance at a reasonable price. Flooding is a major risk and if you have suffered it in the past then you need an expert broker who understands all about it in order to get a real price.
If you go to a big name brand that advertises on telly and they offer you a price it will usually be one of two things: 1: a low price because they will exclude any flooding from future claims, which is useless to you. 2: A highly inflated price possibly with or without an enormous excess because they want to cover themselves against future claims – again useless to you.
A flood insurance specialist will understand exactly what happened through your prior claim. They will understand the remedial works that fixed the problems. They will know the future flood risk for the area and understand what preventative measures have been put in place. That information allows them to rate the risk properly and give a realistic price for insurance, with a real world excess figure.
So, the sure fire way knowing if you need flood insurance is if you have flooded in the past – but there are other factors to consider, mainly common sense and postcode led.
If you live in what the Environment Agency calls a flood risk zone – and there are 5.2million properties (roughly 1 in six) that do, then you are at risk and need flood insurance. This is most likely to be preventative insurance as you will not have flooded yourself but the postcode suggests a risk. Again, talking to a flood expert is likely to result in a realistic price with cover against flooding as they understand the real risks.
And if someone near you has flooded recently, that is the common sense approach that you are going to need flood insurance and it is best to speak with a specialist again.
The insurance industry is moving slowly towards flood risk being included within standard home insurance and averaging the cost amongst the whole country but that is likely to take a while to come to fruition, so in the meantime this guide will help you determine if you need specialist flood insurance or not.