Other insurers expected to follow Norwich Union

| August 7, 2007 | 0 Comments

The online insurance comparison service, Insurancewide.com, has stated that other insurers are expected to follow Norwich Union’s lead in increasing home insurance premiums following the recent flooding.

Those who live in areas affected by the recent floods are likely to see their premiums rise significant although the majority of homeowners will not see the entire 10% rise.

In order to assess the risk of a property, insurers use flood maps based on postcodes. However, these maps vary between insurers so even if one insurer deems your property to be a high risk, another may not. It is recommended that you tell your insurer if you live on top of a hill or in a block of flats. The surrounding area may be at risk of flooding but your property will not be at risk.

It is doubtful that will homes will become uninsurable because if the typical companies do start to withdraw from flood-hit areas, there is an opportunity for specialists to move into the market.

Premiums offered by these specialist insurers may be higher but should ensure that homes in danger of flooding are fully covered in the event of a disaster. These specialist insurers may require homeowners to take extra precautions to prevent flooding.

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