Check your Flood excess!
With the increasing instances in flooding from prolonged spells of rain and flash flooding from short heavy downpours, we have noticed a lot of mainstream insurers have been re-categorizing a lot of addresses as being in "an area at risk of flood".
Insurers have been investing heavily in updated and comprehensive flood mapping systems in order to properly manage their exposure when it comes to acts of nature. The systems provide information on worst case scenarios ranging from the areas "at risk of flooding" due to rivers breaking their banks to the types of soil in particular areas which may effect surface water run-off and cause flash floods. Some of the systems are apparently accurate to within 5 square metres.
The important thing to note here is that you don't necessarily need to live near a natural watercourse to be deemed to be in an area at risk of flood.
If your existing insurer now deems your property to be in a flood risk area, it may effect your policy in the following ways at renewal depending on how severe a risk they rate you to be:
1. They may not offer renewal terms
2. They may exclude Flood cover
3. They may heavily increase your premium
4. They may increase your policy excess for Flood (up to as much as £10,000!)
5. They may do more than one of points 2, 3 and 4.
At renewal, the insurers are supposed to highlight any significant changes to your policy but this can be a single line on a page of writing so could be easily overlooked.
The point I'm trying to make is, when you get your renewal through for your home, let property, business premises etc, even if it's just a contents policy, it's always a good idea to double check the perils you are covered against and the corresponding policy excess for each one.
For more information on what Advance Insurance do, please see our website www.advanceinsurance.co.uk