News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the August / September 2001 issue RPI news archive

Stormy times for policy holders - August / September 2001

Household insurance is set to shoot up, especially in areas at risk of flooding.

The warning came from market analyst Datamonitor. Its report warned that some insurance companies will be refusing cover to those in high risk areas.

Even if households that have experienced previous flood damage are able to get cover at increased cost, they could well find their policy does not cover the first £10,000, even £20,000 or £30,000 of claims.

Simon Ronaldson, a lead analyst at the firm, said he expected premiums to rise by only about 3.5 per cent across the board but by 'double digit percentages' in flood risk areas.

The market is becoming more selective because while flood forecasting has become more effective, development of flood defences has lagged behind.

The Association of British Insurers has warned the Government that if adequate flood defences are not erected in the most vulnerable areas its members would be 'red lining' them.

More recently, the ABI welcomed as 'a step in the right direction', Government's planning guidance for development in flood risk areas.However, it reiterated its stance on prevention and protection saying that ministers now needed to focus their attention on flood defences in order to protect 'existing vulnerable properties'.
 

other artilces from the August / September 2001 issue

• Getting off benefits
• Byers 'entices' investors with HB conditions
• Dispersal policy driven by 'cheap accommodation'
• Void calculation held to be void
• Stormy times for policy holders
• Security bye-law considered
• Independent insurance advice
• Mixed messages on house prices
• In brief