The Battle Between Home Insurance And Annual Flooding

NathalieMStarred Page By NathalieM, 29th Aug 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/js0txuhh/
Posted in Wikinut>Money>Insurance

In an ever changing market that fluctuates between brilliant boom and beguiling bust, it’s always important to protect what’s yours.

The Importance Of Protecting Your Home

In an ever changing market that fluctuates between brilliant boom and beguiling bust, it’s always important to protect what’s yours.

How can we do this? Well you could buy a safe and keep everything you hold dear to you under lock and key. While this works fine for petty cash, jewellery and other small keepsakes, it doesn't work so well with the big things. For example: Your house, your car, your business or your savings. What happens when something affects one of these and what can you do to stop it? When one of these becomes damaged, is stolen or depreciates in value more than you thought it would, it can be a massive financial (and emotional) blow.

There is one way in which all these things can be secured, insurance. It’s a simple necessity (in many cases) that is often over complicated and over expensive if not researched thoroughly. When is insurance essential? Well, you are required by law to have insurance on your car for example, in case of a crash or a ‘prang’ and clever marketing tactics ensure we don’t forget it. Whether it’s a fat tenor singing in your face, a menagerie of cartoons dancing on your television screen or a small, anthropomorphized mammal descended from the mongoose family trying to flog you a stuffed toy as well as offering a no claim bonus, advertisements for insurance are everywhere. Although home insurance is not a legal requirement; it is beneficial.

Atmospheric Rivers To Blame For Flooding

Home insurance has been an increasing problem over the past decade. As the weather over the United Kingdom becomes more and more sodden, housing estates and villages built on floodplains have come under increased danger from annual flooding. This flooding is only set to increase in magnitude and regularity in the coming years, piling on pressure for homeowners and insurance brokers alike.

Research published in the Environmental Research Letters show that atmospheric rivers (ARs) flowing high in the Earth’s atmosphere are to blame for this flooding. A warmer climate caused by our addiction to fossil fuel and dirty greenhouse gases has the capacity to hold more water, but that water has to go somewhere eventually. The rainfall these ARs deliver is much heavier and much more dangerous and greatly increases the chance of flooding in the United Kingdom and central Europe.

Home Insurance Under The Cosh From Annual Flooding

Once the water recedes and the fallout from the heavy rainfall is revealed, the hard work begins. Drying out your home doesn't look like much fun and neither does living in a constant building site but this is the life some people in rural England live, on a yearly basis. Home insurance helps but the relationship between flood prone properties and insurers is becoming more and more strained with every downpour. The typical home insurance claim against flooding can range between £20,000 and £40,000. An agreement that has been in place for 12 years between the government and insurance companies that guarantees homes in high flood areas an insurance product (as long as the government continues to increase flood defences) ran out this July, meaning that premiums could spiral out of control.

With many different types of insurance on the market for homes and many different companies offering many, many different types of cover it’s easy to get confused about the whole thing. What’s important to remember when you’re looking to get insured is the type of customer you are. If you own multiple pieces of property you’ll need landlord insurance. If you’re part of a buy to let scheme, you’ll need a buy to let insurance and if you’re a home owner, well you get the picture by now.

Different Policies For Different Needs

Insurance brokers break down their policies like this to ensure that every separate type of home owner gets their individual needs catered for. It makes things more personalised and helps to differentiate between the different types of homeowners, and the type of cover they need. If you live in a high risk flood area then it’s always best to check with your insurer whether or not they offer special flooding protection. Go without it and you could find yourself up to your ears in debt and expensive home repairs as well as waist deep in water and floating furniture.

With the research showing that flooding is set to become more regular, more dangerous and more expensive for the country as a whole to deal with; it’s yet to be seen how insurers and homeowners will deal with this constant threat. Climate change is pushing us into a corner, not only with our weather but also with our home lives, I suspect that many people will have underestimated the true nature of climate change and how it will not only change the big picture, but also homes, families and businesses across the world.

Thanks For Reading

Thanks for reading. Make sure you check out the rest of my work on WikiNut, especially A Few Tips On Managing Your Money!

Don’t forget to follow me on Twitter for more - @MartinNathalie9

Image source: http://www.flickr.com/photos/cheltenhamboroughcouncil/1028113901/

Tags

Bet To Let Insurance, Flooding Insurance, Home Insurance, Insurance

Meet the author

author avatar NathalieM
Hello! I'm Nathalie and I love writing about what makes my world tick! Fashion, weddings, interior design, health, property..You name it, I will write about it!

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