Changes to flood insurance could change how much you pay
Insurers have reached an agreement with the Government over changes to the rules around flood cover for at risk properties, which will come into place in 2015.
July 11, 2013 | post last updated on August 18th, 2016
Insurance companies will be able to continue offering flood cover to homeowners, except those in the most expensive properties (in tax band H or equivalent) and those built after 1 January 2009.
The changes will mean a cap on the amount homeowners pay for flood insurance, which will be linked to the amount of council tax they pay. Those in band A will pay £250 a year and those in band G will pay a maximum of £540 a year.
It will cost approximately £10 of every home insurance policy in the UK. This amount of money is supposed to be enough to cover payouts for a flood six times worse than those in 2007. Insurers providers say the cost will be absorbed by the amount clients already pay.
Until 2015, homeowners can get flood insurance if the Environment Agency has said their house is not at ‘significant’ risk of flooding, or if the they are in an area where the Government is planning to reduce flood risk below ‘significant’ in the next five years.
The announcement came within days of an investigation by the Daily Telegraph, which revealed that 560 homes were built in 2012/13, despite concerns raised by the Environment Agency about the risk of flooding.
It was also revealed that, in the last five years, around 3,930 homes were built against EA advice.
By Tom Allsop