The risk of flooding has increased dramatically over the past few years so it pays to know what your covered for if the worst happens and your house and belongings are destroyed by flood water. Official figures from the Environment Agency put the number of properties at risk of flooding in England and Wales at around 5.2 million, of which 2.4 million are at risk of flooding from rivers or the sea, and 2.8 million properties are susceptible to surface water flooding alone.
If you are in a high risk area it's worth knowing the facts about flood insurance as they way insurance companies cover you for flood damage is changing over the next couple of years. The UK is one of the only countries that cover flood damage as standard, with those in high risk areas paying a higher premium for their cover. At present there is an agreement between the government and the insurance industry called the Flood Insurance Statement of Principles which is active until the summer of 2015 which means insurance companies must continue to offer flood cover to existing customer who renew their policies with the same insurance company.
From June 2015 this is changing to a new scheme called 'Flood Re' which has now been agreed. The new scheme means the amount you pay for your home insurance and flood cover is capped based on the council tax band of your property and the amount of risk their is of flooding. These caps start at a maximum of £210 a year in Bands A and B and rising to £540 a year in Band G. This is funded by an industry wide insurance fund pot made up from the additional preimums paid by high risk customers and also a £10.50 levy on low risk insurance policies.
In England, homes that fall under Band H council tax will not be covered. Meither will the equivalent homes in Scotland, Wales and Northern Ireland. Owners of properties built since 2009 also won't be covered although these people are not protected under the current Statement of Principles. The reasoning behind this is to discourage the building of housing developments in areas that suffer from a risk of flooding.
If you live in a high risk area, sign up to weather alert services so that you are as prepared as possible when bad weather strikes. Keep a supply of sand bags and wooden boards that you can use to block doorways to reduce the amount of water that can get into your house, and if its looking likely that your house will flood move as many items upstairs as fast as possible. If the worst does happen and your house flood, it's a good idea to take as many photos as possible to use as evidence in any claim you need to make. Also as hard as it will be to resist, try not to start clearing up until the insurer company has sent a loss adjustor to assess the damage.