Category Archives: Insurance

Moorland flood couple back home after 7 month

A COUPLE from Moorland who were forced to evacuate their home during the floods earlier this year have been able to resume their lives this week.

Richard said: “We don’t have any choice but to carry on living here because the house now has no resale value, so we might as well spend the rest of our days here and hope nothing like this ever happens again.” Continue reading Moorland flood couple back home after 7 month

Flood insurance costs are likely to grow

A citizen science project suggests climate change really has increased the risk of flooding in the UK.

The issue has been highlighted by the recent floods, amid a January that saw double the normal monthly rainfall in parts of England.

Prof Myles Allen presented evidence of a link between floods and climate change at the European Geosciences Union (EGU) meeting in Vienna.

It indicates climate change is increasing the risk of extreme weather.

It also suggests that insurance costs are likely to grow. (more)

Vulnerable New Homes Excluded from Flood Insurance

On 4 December an article by Aidan Kerr, head of property at the Association of British Insurers (ABI),  in the Yorkshire Post reported that widespread concerns have been raised over recent weeks after it emerged small businesses and properties built after 2009 will be excluded. The announcement means yet another group of property-owners being excluded from the scheme – known as “Flood Re” – which was unveiled amid much fanfare by the Government in the summer after years of negotiations with the insurance industry. Continue reading Vulnerable New Homes Excluded from Flood Insurance

House of Commons Managing Flood Risk June 2013

House of Commons Managing Flood Risk

Para 50. Agreement that the Government will “prevent unnecessary building in areas of high flood risk”. Evidence to the Committee’s previous Future Flood Management Legislation inquiry supported this approach—for example, an insurance company urged that “clear attention” be given to curbing construction in areas exposed to high flood risk. A key aim of the PPS 25 (Planning Policy Statement on flooding) was to ensure that local authorities framed policies to locate development in places that “avoid flood risk to people and property where possible”, and which “manage any residual risk, taking account of the impacts of climate change”. Continue reading House of Commons Managing Flood Risk June 2013

Defra and Association of British Insurers reach an agreement on flood insurance

Hundreds of thousands of households in flood-prone areas will be guaranteed affordable flood insurance after the government and insurance industry agreed a deal today. (27 July 2013)

After negotiations with the Association of British Insurers (ABI), this new agreement replaces the current ‘Statement of Principles’ that runs out at the end of July and will bring peace of mind to people who will soon need to renew their insurance. Continue reading Defra and Association of British Insurers reach an agreement on flood insurance

A future Scotland could be awash with climate problems

IN an independent Scotland, the rain would keep falling regardless; says Professor Alan Werritty on Friday 21 June 2013. Whether we vote Yes or No in next year’s referendum, the nation’s future will likely be at least as wet as its recent past, and probably much more so. The best educated guesses are now suggesting that the floods to come will alter our landscape and our way of life to a vastly greater extent than any constitutional sea change. Continue reading A future Scotland could be awash with climate problems

Where to get home insurance for high flood-risk homes

Is your home identified as being a high flood risk? If so it may be tricky to arrange home insurance, but there are options says money.uk on 8 April 2013. The ABI (Association of British Insurers) is calling for:  a rigorous planning system that prevents developments in high flood risk areas;  sustained, long-term flood defence spending; and Government support to ensure flood insurance remains widely available and affordable. Continue reading Where to get home insurance for high flood-risk homes

Failure to reach flood insurance deal is ‘playing with people’s lives’

Government accused of game of bluff with insurers as thousands of flood-risk properties could soon lose cover reports The Guardian on 31 March 2013. The chairman of a national charity that helps householders affected by floods has accused the government of “playing with people’s lives” as it looks increasingly likely that thousands of homes will be without affordable insurance from July.

Last week environment Secretary Owen Paterson admitted he was disappointed at failing to secure a new agreement over the insurance of homes and businesses at high risk of flooding. The government has been locked in talks with the insurance industry for months over the future of flood cover as the existing agreement – the Statement of Principles – runs out in June 2013. This agreement between the government and the industry obliges insurers to offer flood insurance as part of standard policies at reasonable rates, providing the government invests in flood defences. Continue reading Failure to reach flood insurance deal is ‘playing with people’s lives’

MPs call for flood insurance action

The Government must step up its efforts to seal a deal with property insurers over flooding before a June deadline to stop home-owners being left with uninsurable, unsellable homes, the original Express & Star March 26, 2013 5:10 pm  article can be seen here The statement of principles under which flood-threatened properties can be insured expires in the summer and talks between ministers and the Association of British Insurers (ABI) are reported to be deadlocked.
Continue reading MPs call for flood insurance action

Thousands of homes planned for flood plains

Developers are planning tens of thousands of new homes in areas at high risk of flooding, it can be revealed.
Thousands of homes planned for flood plains; Analysis by The Sunday Telegraph of planning applications that the Environment Agency objected to because of flood risk has revealed developers last year submitted more than 3,000 separate plans to build 27,923 houses in areas prone to flooding. One recently-built estate in Ruthin, north Wales, was left underwater despite residents being given guarantees  that their £200,000 homes were safe from all but the worst floods. nearby St Asaph, an elderly woman was found dead in her flooded house after 500 homes were evacuated. Continue reading Thousands of homes planned for flood plains

Insurance Post says: Flood prone homes facing £10k excess

Some high-flood risk households could pay excesses of up to £20,000, according to AA figures

Thousands of homeowners in high-risk flood areas are paying excesses of more than £10,000, the Financial Times reports.

The paper cites figures from insurance broker AA Insurance, which said that thousands of policyholders face excesses of “significantly” more than £10,000, with some even having to pay £20,000 before their insurance cover kicks in.

This compares with excesses of £250 for homeowners in areas with low flood risk. Continue reading Insurance Post says: Flood prone homes facing £10k excess

Planners, Developers & Architects should be held legally liable when family homes are flooded !!

In August 2012, Professor David Crichton, an expert on ‘Flooding issues’,  updated his earlier academic paper stating that England should copy Scotland in flood risk prevention.  He calls for planners, developers and architects to be “legally liable when people are flooded” this he says is a way of preventing further high risk flood zone and flood plain development. Continue reading Planners, Developers & Architects should be held legally liable when family homes are flooded !!

House cover shot up by 35% over ‘flood risk’

Joanna Hopwood says my “uphill house” flood insurance shot up by 35% over ‘flood risk’ from a ditch as Aviva uses new technology for premiums as reported on 07 October 2012 by Jeff Prestridge of this is money.co.uk website . Aviva Britain’s biggest insurer, is facing a backlash from a minority of customers over the introduction of new flood-mapping technology designed to align premiums more precisely with the flood risk to individual homes. Continue reading House cover shot up by 35% over ‘flood risk’

Insurers advise home owners on flood preparations

Insurers advise home owners on flood preparations, says Jan Harris on September 24, 2012. With sixty-five areas of England on flood alert, the Association of British Insurers is warning home owners to keep insurance documents and emergency contact details in a safe, dry place. Contacts for gas, water and electricity providers should also be kept safe. Continue reading Insurers advise home owners on flood preparations

Premium hope for Cumbria flood-risk families

An agreement between government and the insurance industry over the future of flood insurance is imminent – but could see householders paying out extra costs. as reported 17 July 2012 by the North West Evening Mail. The insurance industry has an agreement with the government – which runs out in 2013 – committing it to provide cover for customers, as long as flood risk is properly managed. Continue reading Premium hope for Cumbria flood-risk families

Plea for help as West Cumbrian flood insurance crisis grows

Thursday, 19 July 2012 a Plea for help as West Cumbrian flood insurance crisis grows as reported by the Times & Star: Some Cockermouth householders can no longer afford to pay for flood insurance. The scale of Cockermouth’s flood insurance crisis can be revealed today as residents continue to struggle with issues more than two-and-a-half years on from the November 2009 floods. Continue reading Plea for help as West Cumbrian flood insurance crisis grows

Flood may be the first time in living memory

Careful study needed if Wales is to make good use of floodplains says Simon Haslett, Professor of Physical Geography and Associate Pro Vice-Chancellor of the University of Wales in his article at Wales Online. Certainly for residents of flooded areas it may be the first time in living memory that they have suffered an inundation, but that doesn’t mean that floods have not occurred in these areas in the past. Continue reading Flood may be the first time in living memory

Environment Agency says “difficult to stop flooding completely”

Environment Agency says “difficult to stop flooding completely” when rainfall levels are high

The Environment Agency has defended its flood response over the past two days, saying “it’s difficult to stop flooding completely” when rainfall is high as reported by the BBC. Up to 500 properties flooded in Lancashire and West Yorkshire after a month’s worth of rain fell in 24 hours.

Agency spokesman Alex Ross said there had been “very, very high levels of rainfall falling in a very short period of time” in Lancashire and Yorkshire and that some rivers had reached their highest levels on record.

“We can try and predict where the rain will fall, we can try and give early alerts and warnings and we can try and build flood defences to give a reasonable level of protection but it is very difficult to stop flooding completely.” Continue reading Environment Agency says “difficult to stop flooding completely”

June 2012: Homes evacuated as month’s worth of rain falls in a day

More than 11,000 homes and businesses are being protected by flood defences and owners of 7,000 properties have been issued with warnings as people were forced to flee after more than a month’s worth of rain fell in 24 hours says the Independant.

The Environment Agency said people should remain vigilant and warned of further rain throughout Saturday and into Sunday in areas of northern England already counting the cost of what it said was “exceptional rainfall and record river levels”. Continue reading June 2012: Homes evacuated as month’s worth of rain falls in a day

Flooding victims are pleading with builders to stop development on grassland before their houses are damaged.

Flooding victims are pleading with builders to stop development on grassland before their houses are damaged.

On Saturday 23 June 2012 the Yorkshire Evening Post  reported that several residents who live at the foot of the Harvest View development, on Garforth Cliff, have had their gardens engulfed with water after developers started work on land that naturally soaked up the rain. Continue reading Flooding victims are pleading with builders to stop development on grassland before their houses are damaged.

Rise in the price of home insurance premiums

On 15 June 2012 Jan Harris of Finance Markets reported that recent flooding could lead to higher insurance premiums. Floods currently affecting Wales and south east England could be following by a rise in the price of home insurance premiums, according to analysts.

The heavy rainfall could cause some insurance companies to miss their profitability targets, and there is more rain on the way according to the Met Office, with flood warnings in place across the UK. Continue reading Rise in the price of home insurance premiums

Monsoon in summer: more rain is on its way, the Met Office has warned

Flood warnings for UK as storm builds over Atlantic as reported by Steven Morris of the Guardian newspaper group.
Met Office issues severe weather warning – high speed winds and heavy rains to batter England, Wales and Northern Ireland

Monsoon in summer: more rain is on its way, the Met Office has warned. Continue reading Monsoon in summer: more rain is on its way, the Met Office has warned

Homeowners in the highest flood risk properties could lose their insurance

13 June 2012 “This is Money” report says “As flooding hits Britain again, homeowners face big bills and a timebomb ticking for future insurance cover. Already some customers are finding they are being quoted huge flood excesses of as much as £10,000 and extremely costly premiums”. Continue reading Homeowners in the highest flood risk properties could lose their insurance

Wales flooding-09 June 2012: Residents left devastated by floods

Wales flooding: Residents left devastated by floods.

Residents caught up in severe overnight flooding in mid Wales have spoken of the speed the floods hit. Report by BBC News.

Villages in Ceredigion have been cut off with houses and four caravan parks being flooded. Emergency services have helped at least 150 people to safety with several being rescued by helicopter. Stephen South, owner of Riverside Caravan Park in Llandre, near Aberystwyth, described the situation as “very, very frightening”. “I’ve lived on Riverside for 22 years but I’ve never witnessed anything like this before. We have nothing. The only clothes we have is what we’re standing up in, but we’re safe and that’s all that matters” Continue reading Wales flooding-09 June 2012: Residents left devastated by floods

Flood insurance improvement but will it remove Cleator Mother’s Fear

Flood-risk households get closer to insurance guarantee“Comment on article-but will it remove the fear of floods, see statement below by mother and householder Rita Edge of Cleator, West Cumbria: original article by Lisa Bachelor;    guardian.co.uk, Tuesday 8 May 2012 12.33 BST Continue reading Flood insurance improvement but will it remove Cleator Mother’s Fear

Mortgage lenders join call for clarity on flood insurance

Mortgage lenders join call for clarity on flood insurance

3 May 2012 |By Newsdesk

Affordable insurance ‘key to stable housing market’ says lenders’ association

The Council of Mortgage Lenders (CML) has added its voice to the call for greater clarity on future availability of flood insurance in risky areas. Continue reading Mortgage lenders join call for clarity on flood insurance

Is it Possible to Have Sustainable Flood Insurance without Sustainable Flood Risk Management?

Like Ireland and Queensland, England has yet to adopt sustainable flood management practices on any large scale. Indeed land use planning is becoming less regulated and is likely to result in even more inappropriate development in flood hazard areas under the new National Planning Framework: says Professor David Crichton MA(Hons), FCII..Chartered Insurance Practitioner. Continue reading Is it Possible to Have Sustainable Flood Insurance without Sustainable Flood Risk Management?

Guidance on Insurance and Planning in Flood Risk Areas for Local Planning Authorities in England

The framework sets out the Government‟s vision for planning in England, focusing particularly on sustainable development and local decision making.
It is vital that new development is insurable. Property insurance provides customers with the confidence that they are protected should the property be damaged or rendered unusable. Insurance is also a prerequisite for the vast majority of mortgages, and therefore underpins local housing markets: Continue reading Guidance on Insurance and Planning in Flood Risk Areas for Local Planning Authorities in England

Only a Fool – says Finance site

AOL Money & Finance website on April 11, 2012 reports:  “Of course, nowadays only a fool would unwittingly buy a home on a flood plain as it is very easy to find out where they are – just visit www.environment-agency.gov.uk for flood maps and a wealth of invaluable information. If that doesn’t put you off an otherwise perfect property, the associated insurance costs might make it unaffordable”. Continue reading Only a Fool – says Finance site

Insurance solution for flood-risk homes

On Apr 3, 2012 Hannah Ricci, reported that a new solution to help homeowners on flood plains insure their properties is set to launch this summer. (N.B. immediate concern is shown on effectiveness of solution) With a government agreement that requires insurers to cover flood-prone homes due to end next year, ‘Project Noah’ is currently being trialled to help the thousands of households who face becoming uninsurable. Continue reading Insurance solution for flood-risk homes

Steve Gilbet MP-02 April 2012-Government must wake up to Flood Insurance

Since it’s virtually impossible to sell an uninsurable house, house prices in the worst affected areas would plummet, trapping the vulnerable and those on low incomes in new areas which are likely to emerge as what the Environment Agency calls “deprivation hotspots”. And, in the event of a flood hitting, lives will be utterly destroyed as families and businesses lose everything without the recourse to funds for rebuilding. Continue reading Steve Gilbet MP-02 April 2012-Government must wake up to Flood Insurance

Role of the third sector in Cumbria flood recovery

Recently Cumbria CVS completed a research project that established the importance of the work of the voluntary sector in helping Cumbrian communities recover from the November 2009 floods.
It is interesting to note that on page 89 of the document they say:  The ‘statement for principles’ ends in 2013. There have been a number of flood summits attended by the Association of  British Insurers (ABI), Brokers, Insurance companies, Nation Flood Forum (NFF) and concerned MP’s. “Many areas that have been flooded are now facing increased premiums and vast excesses. Houses cannot be sold as new owners cannot obtain home insurance”.

Social justice and the future of flood insurance

Joseph Rowntree Foundation says: Catastrophic flooding events have become increasingly frequent in the UK and, with climate change, are likely to become even more frequent in the future. Page 13 of this document states: In England roughly 10 per cent of new build is in flood plain. In contrast, in Scotland there has been no new build in flood plain since 1995. The extent of new build in flood plains in England, in particular, (see Table 1) and the absence of regulations on flood resilience in building raise serious problems.

Governments Response to Pitts Review summer 2007 Floods – 2012 Final Report

Pitt says in 2007: There should be a presumption against building in high flood risk areas

Government says 2012: Government continues to recognise the importance of preventing unnecessary building in areas of flood risk and that new development that does take place should be safe and not increase flood risk. Continue reading Governments Response to Pitts Review summer 2007 Floods – 2012 Final Report

Government may now be unable to complete flood infrastructure

The UK has suffered the driest 18 months since records and with the south east and east Anglia already officially in a state of drought the Association of British Insurers (ABI) is warning home owners to be aware of the risk of subsidence.

Additionally the government may now be unable to complete the necessary flood infrastructure due to lack of funds which will make it difficult for owners to purchase insurance cover if the government fails to build flood-control infrastructure.. Continue reading Government may now be unable to complete flood infrastructure

High-Risk Stakes on Flood Insurance

Flooding is the biggest environmental threat facing the UK, according to Defra chief Scientist Sir Bob Watson. The risks of flooding are projected in increase significantly across the UK. The landmark Climate Change Risk Assessment, published earlier this year, set out a clear case on the scale of the risk facing the UK from climate change and increasing flood risk. This is not news to the many communities already facing heightened risk from flooding. Full article 08/03/2012

Catastrophic losses possible says Joseph Rowntree Foundation

Joseph Rowntree Foundation says on 07 March 2012: Flood insurance changes could bring ‘catastrophic losses’

As early as next year (2013), up to 200,000 homes in the UK could find themselves effectively uninsurable against the risk of flood. Continue reading Catastrophic losses possible says Joseph Rowntree Foundation

Councils MUST Stop Foolish Housing Developments in High Flood Risk Area says Insurers

BBC News 27 February 2012: Nick Starling, Director of the Association of British Insurers, said members were determined that flood insurance remained as “widely available and competitively priced” as possible but local authorities need to ensure that there is no more foolish housing development in high flood risk areas. Up to 200,000 homes could struggle to get insurance against flooding next year, according to council leaders.The Local Government Association (LGA) wants to replace a soon-to-expire ‘safety net’ covering flood-risk areas. Continue reading Councils MUST Stop Foolish Housing Developments in High Flood Risk Area says Insurers

Don’t Build on Flood Zone says Environment Agency

The Environment Agency being the British Government body required to control, monitor and advice on all matters affecting ‘Floods’ says : Get the location of new housing right: We need to avoid building homes in places where we will regret doing so, such as in areas at risk of flood. Continue reading Don’t Build on Flood Zone says Environment Agency

Uninsurable, Unmortgageable and Unsellable Homes

Families living in flood-risk areas could be left with uninsurable and unsellable home:  The town of Morpeth in Northumberland faced massive flooding in 2008, hitting 950 homes. Alan Bell, chairman of the Morpeth Flood Action Group, says many locals have been unable to sell their homes because they cannot get affordable home insurance. Continue reading Uninsurable, Unmortgageable and Unsellable Homes

Flood damage costs between £20,000 and £40,000+

Moneywise reveals the 10 most common problems that are likely to impact the value of your home.

LIVING ON A FLOOD PLAIN is number three only being beaten by ANTI-SOCIAL NEIGHBOURS and ILLEGAL HOME ‘IMPROVEMENTS’ and will cost between £20,000.00 to £40,000.00. Continue reading Flood damage costs between £20,000 and £40,000+

Jamie Reed M.P. fears communities becoming not just uninsurable, but unmortgageable

Copeland MP Jamie Reed, Labour’s shadow floods minister says, “Cancelled flood defence schemes and changes to flood insurance are causing communities up and down the country to begin to fear for the future. The fear among many is that Government action will lead to whole communities becoming not just uninsurable, but unmortgageable. Continue reading Jamie Reed M.P. fears communities becoming not just uninsurable, but unmortgageable