When your house is located in a flood region, you have to suffer all the consequences that come with it. Floods may come any time, and you have to be always be prepared for it. One hitch for living in a flood area is it will affect your flood zone insurance premium.
Insurance companies are becoming hesitant to give insurance policies to houses located on flood risk areas because it can not have escaped every one’s attention that parts of the United Kingdom were severely devastated by floods in 2006 and 2007. This will affect insurance providers too because if everybody suddenly files for a flood insurance claim, either they will have to raise all the insurance premiums or they will close shop before the year ends.
With this, insurance providers are appealing to the government to focus their attention in increasing flood defenses especially in the areas worst hit by the recent events. Most of the standard home insurance policy providers in the UK very rarely include flood damage cover. This is why you have to ensure your homes and your house contents with an appropriate insurance policy.
If you are lucky your insurance provider may renew your policy but even then, do not be surprised if you will be asked to pay a much higher premium since you live in an area hit by the recent flooding. This is one of the disadvantages of living in a high risk area. Even if you want your home and properties covered by insurance, the providers will not be welcoming you with open arms.
Insurance firms have a business to run and if you pose as a high risk customer, you can not blame them and they are not obliged to renew your flood insurance policy even though you are an existing policy holder of their company.