Home Insurance - be prepared for flooding

A recent report led by the Government's Chief Scientific Adviser, Sir David King, predicts that climate change will be an important factor in increasing flood risk, and that both the number of people in danger from flooding and the costs of damage from floods will significantly rise. The report says that flooding will affect more and more people over the coming years through a combination of increased tidal flooding, higher river levels, more frequent and heavier rainfall, and climate change affecting the amount of water in the oceans.

It may well be the case that you or a family member may be one of the 1,000s of unfortunate people to have experienced flooding in the UK recently. Even if you have not been directly affected, you may have had a leaflet through the door from the Environment Agency warning you of future possibilities. So whatever your experience of flooding, there is clearly an increased likelihood that many more of us will be affected over the next decade.

According to the ABI (Association of British Insurers) there are more than 5 million people and 2 million homes at risk from coastal or inland flooding - that's around 10% of all UK homes - and those numbers rise each year. Evidently, it's becoming more and more important to make sure your house and contents are covered for flood damage. That means you need to insure that your building insurance policy provides comprehensive cover for flooding and flood damage, as well as your home contents policy.

The Environment Agency is a good place to start for advice on how you and your property may be affected. As they say, 'one of the greatest causes of stress experienced by people who have flooded is lack of adequate home insurance'. You can find out what effect flooding may have on your property by using the Environment Agency's simple on-line postcode search facility. However, the decision on how much you pay for insurance is set entirely by the insurance provider not with the Environment Agency.

It is, therefore, important to ask your insurance broker about flooding and the potential risk to your property when agreeing the policy. In terms of lowering your insurance premium, you need to demonstrate that your property is at a lesser risk or show that measures, such as flood defences, are in place locally. In fact, why not ask the insurer to provide a list of measures you could take that could reduce your premium?

In terms of getting value for money, it is also important to compare prices and policies between brokers. A well-respected site such as www.moneysupermarket.com can compare 60 or more insurers and good discounts on home insurance can be had through on-line applications rather than the more traditional approaches. For example ASDA Finance currently has a 10% discount on home insurance policies if you apply on-line. Property website Fish4 can also provide home insurance.