Cheap Flood Home Insurance

Many UK homeowners have recently been hit with higher insurance premiums than expected, due to an increase in heavy rainfall and flash floods throughout the country. Your home insurance is calculated on your level of risk, which means flood and water damage can play a major role in raising your insurance premium- so much so in fact, that properties once considered a low-risk policy are now deemed a high risk to insure.

Other factors that can have a considerable effect on the price and the type of cover that you will need include:

  • The value of your property
  •  The total amount that you want to insure your property and contents for
  • The types of materials used in the construction of your home, including any extensions to the building
  • The year of build
  • The location of the property

How Much Will Flood Insurance Cost?

If your home is considered a high risk, this can seriously affect the overall cost of your home and contents insurance. This is often down to the amount of time and money it may cost the insurance company if you were ever to make a claim on your insurance. A claim for flood damage will mean not only the replacement of your valuables and the repair and restoration of your property but also the cost of housing, while the property remains too dangerous to return to.

If you believe that your home insurance has been increased due to your level of flood risk, you should consider swapping providers and choosing an insurance company that supports the new Government scheme Flood Re that works directly with insurance companies to help provide UK homeowners with more affordable flood risk cover.

To find out more about how Flood Re can help to bring down the cost of home insurance for those affected by flooding in the UK, please visit their official site: www.floodre.co.uk 

8 Causes of Flood

You don’t necessarily need to live within close proximity to a major river to be at high risk of flood- In fact flooding can be caused by any of the below:

  1. Heavy rainfall
  2. Rivers banks break
  3. Rising sea levels
  4. Surface water
  5. Groundwater
  6. Blocked or overloaded drains and wastewater pipes
  7. Ditches and drainage channels
  8. Floodplains

When the UK suffers from a heavy downpour and flash flooding areas that sit on the low-level ground can suffer from water damage, as the ground is unable to hold any more water-This is also known as ground water flooding.  In this instance, puddles form quickly; turning into small ponds and then eventually the area will flood, with water seeping into homes, offices and damaging vehicles. As the water is unable to escape from the low-level ground, it simply accumulates there, until it can be pumped out.

You can find out if you live in an area at risk of flood by visiting Direct Gov website and searching for any flood alerts by entering your postcode here.

Scientists and MPs are in fierce debate as to the reason why the UK has been suffering from an increase in flood but they both agree at least that it is an issue that we can’t ignore.

How to Keep Home Insurance Low

Home insurance premiums are calculated according to risk, reducing your level of risk will, therefore, reduce the price you pay to insure your home. Here are 3 easy ways to keep your home insurance as low as possible;

1.       Protect Your Property

Reducing your level of risk can start with a number of home improvements. If you are in a high theft neighbourhood, consider installing burglar alarms, a safety deposit box and even security cameras. According to the Insurance Information Institute- These simple additions will not only help deter any thieves but also serve as a way to prove to your insurance provider that the likelihood of a break-in is now significantly reduced. (1)

2.       Choose a Flood Re Provider

Flood Re works with insurance companies to help make flood risk home insurance more affordable. Take a look at the Flood Re site for more information.

3.       Increase Your Excess

According to Money Super Market- Choosing to increase your compulsory excess (the amount you pay towards a claim) will help reduce your overall cost of your home insurance. Do make sure that you can afford to pay the excess if you ever did need to make a claim. (2)

4.       Pay Insurance in One Lump Sum

Insurance providers will offer two ways to pay for your home insurance policy. You can either pay off the whole premium in one instalment, or you can choose to pay a little each month. Paying your insurance in one lump sum can work out cheaper, according to Go Compare. (3)

5.       Stick With Your Existing Insurance Provider

If you already have car insurance with a provider that also offers specialist home insurance, sometimes it can be cheaper to stay with them when it comes to insuring your home.  (4)

Lighthouse Home Insurance supports the Government initiative Flood Re, to help provide specialist home and contents insurance at a competitive price. We also offer a range of tailor-made home insurance policies that meet the individual needs of our customers. 

Sources

1.http://www.iii.org/article/twelve-ways-to-lower-your-homeowners-insurance-costs

2.https://www.moneysupermarket.com/home-insurance/money-saving-tips/

3. www.gocompare.com

4.http://www.policyexpert.co.uk/insurance-blog/money-saving/paying-home-insurance-monthly-annually-better/