Home Insurance Premium Raised Due To Flooding In Local Area, But We Live On A Hill.

[RMRM]

My elderly neighbours have been quoted a premium for their home insurance this year nearly double what it cost them last year. The insurance company says that they have to do this due to many claims for flooding in the local area. But we live on a hill well away from the flooded area! I don't know enough about insurance to advise them but it sounds to me like their insurance company are taking advantage of their age to try to rip them off. Should I advise them to try a different company, or will all insurance companies try to rip people off like this? And if so, what should they do about it?

[bob561941]

Go to comparison sites, read the small print,some insurance companies are not paying out on flood claims if the flood has been caused by the rising water table the flood has to have been caused by the overflowing of a river
insurance companies will be quick to take your money but find all the spurious reasons not to pay a claim. I worked for an insurance company for 27 years.

[RMRM]

Dear Bob561941. Thank you for your answer but you have misunderstood. We do not live in a flood prone area, being on top of a hill and away from the flood prone parts of my town. My neighbours don't need flood cover and won't be claiming for flood damage as the chances of us being flooded are to all intents and purposes nil. What I want to know is; this being the case, are their insurance company allowed to bump up their insurance premiums so massively to cover other peoples' flood risk in my town? It will not be to cover any flood risk to my neighbours.

[The Builder]

I've had this a couple of times. The Insurance Co. is simply using maps to determine risk, rather than common sense.

It's quite common for rivers to be drawn with an accompanying "flood plain" drawn crudely to enclose an area each side of the river.

Living close to the River Exe, my house was only fifty metres horizontally from the river. It was also about thirty metres vertically from it. All I had to do was to point out to the Company that, if it flooded, then the whole of Exeter would be under water ............. not very likely.

[soapnumpty]

Your neighbour's insurance company will be using a flood mapping tool like Bob suggested, and your neighbour's postcode is probably coming up as high risk due to the reecnt flooding of nearby areas. If they are happy to go without Flood cover they could ask their insurers to quote excluding Flood, and see what they say. This should bring the premium down. It is best to have the cover though just in case, so try the comparison sites too like bob suggested.

[ToraToraTora]

Insurers will bump it up if they can, relying on apathy. The property in question may be in a post code prone to flooding even if it will not itself flood. As above, first thing to do is a comparison search then go from there. I suspect they are also being ripped off because of apathy. if they are including flood cover then they may have an option to exclude that as it's not going to flood.

Of course we will all have to pay extra for the flooding regardless of whether we actually are prone to it, that's how insurance works.

[factor-fiction]

bob's advice is good- shop around. Insurers are free to set premiums and we are free to shop around. Or you could seek to negotiate a reduction

[Mojo-Jo-Jo]

Just a small point. Does disabling your flood cover put you in any jeopardy if you have a burst pipe or something?

[Nibble]

NO, as IMO, a burst pipe flood would be classed as an internal issue, hence would be outwith the terms of Flood Risk Coverage, therefore as there is little likelyhood of flood incursion in a house with a verticle height above the river, as could be shown in this case, then it is no issue.

[twix123]

Your neighbours should use a reputable local insurance broker to seek cover and negotiate with the insurance market. They can explain the elevation of the property above the flood level and find the best cover.

All home insurance premiums will rise to cover the very high level of claims this winter, no matter which insurer you go to. You can only call it a rip off if premiums rise excessively in years when there is not a great deal of claims being made!

[Caran]

We use Saga. We have been flooded twice in the last 8 years.this was due to a faulty washing machine connection that had been spurting water for weeks or months. The entire ground floor was affected each time. New carpets, plastering redecoration. They went the full limit on sorting us out. Our premiums rose slightly. They did say we would have £1000 excess on any flood claims but that was fair. But last year the premiums more than doubled, to more than £650.
I queried it, they promised to do something but they made errors. Eventually I said I was fed up with the treatment and would leave. They said leave it with us. Came back and quoted £160 for insurance covering everything. I couldn't believe it but snatched their hands off. Can't wait to see what happens in July when it's up for renewal again.

[soapnumpty]

Just to clarify, a flood in insurance terms is not the same as a leak from a pipe or a washing machine. They are completely different perils to use insurance terminology. A Flood is water damage due to a river bursting its banks or similar, ie due to the weather. It is this that is costing insurance companies millions and is the reason that premiums are rising. Damage caused by water leaking from a pipe or appliance is known Escape Of Water. You could exclude cover for Flood, and still be insured against leaks from pipes etc, under the Escape of Water peril.