Property owners across the country are suffering financial misery as home insurers hike premiums to cover the costs of ongoing flood damage, say drainage expert Drain Claim.
A recent BBC Watchdog programme highlighted the growing problem of home insurers increasing insurance premiums in areas with non-existent flood risks, inflating the bills of low risk homeowners to help subsidise higher risk properties.
It’s a familiar story at Drain Claim, which has received numerous reports from customers of insurance companies raising premiums and changing policy wording to avoid flood insurance claims.
As a result, home owners hit by flood damage are needlessly spending thousands of pounds rectifying ruined homes because they do not understand what is covered under their buildings insurance policies, while those living in non flood risk areas have become part of a postcode lottery of rising premiums across the UK.
“Inflated premiums at the point of renewal and changes in policy wording are two issues which more and more of our customers are raising with us,” said Drain Claim chief executive David Hayes.
“Such behaviour is leaving homeowners across the country in an impossible situation.
“Few will risk not having any home insurance and therefore they are being forced to pay exorbitant premiums, often when they are not even living in a flood risk area.
“Equally, those whose policies previously included flood damage are finding at renewal that flood insurance has been removed or now has to be added on at extra cost as ‘accidental damage’.
“This is truly unacceptable behaviour by the insurance industry and, as Watchdog highlighted, is an issue that must be addressed particularly in light of the Statement of Principles on the Provision of Flood Insurance expiring next year. Insurers and government must do everything in their power to reach agreement on a sustainable replacement for the Statement of Principles or we risk finding ourselves in an situation next year where insurers simply refuse to cover high risk properties.”
As the only FSA approved company in the UK currently to offer free, professional advice on drainage insurance claims, Drain Claim is appealing to home owners affected by the floods not to pay out for repairs unless they are 100 per cent confident they do not have adequate insurance cover.
Drain Claim’s insurance handling experts offer free, professional advice on insurance claims. Once appointed, Drain Claim represents customers and negotiates directly with insurers or their representatives.
Find out more at www.drain-claim.com or by calling the Drain Claim team on 0800 040 8310.