Made a flooding home insurance claim? It's still worth shopping ...

The sodden summer did more than put the dampeners on a few barbeques.

Thousands of households were hit by devastating floods that prompted insurance claims worth more than ?500million.

From giant hailstones battering homes and cars in the East Midlands and North East England to flash floods in Shropshire, Devon and the Scottish Borders, Britons around the country suffered as a result of the inclement weather.

Julie Fisher, head of home insurance at MoneySupermarket, said: While the UKs weather appears benign when compared with the extreme conditions in other parts of the world, homeowners need to be increasingly on their guard against potential damage to their property.

That means having adequate buildings and contents insurance in place.

The deluge of home insurance claims started a couple of months ago during the wettest June in more than a century. There was also a surge in motor and commercial property claims as motorists and businesses felt the effects of the storms and floods.

Flood warnings

The Environment Agency issued almost 50 flood warnings and alerts across England and Wales during June. Insurers losses during that month amounted to around ?17million a day ? the highest cost since the 2007 flash floods, which resulted in a total bill of ?3billion.

As anyone living in Briton knows, however, the rain has continued to fall since then, albeit at a slightly lesser rate, with several more regions suffering floods during July.

Sarah Bailey at the Association of British Insurers said: During June alone insurers helped 68,000 customers hit by the floods and storms. A few weeks ago, we estimated the cost of the summer flood and storm damage to insurers at ?500million.

There has been further localized flooding since then, though, notably over the last few days in Scotland and the North East.

Analysts estimate that Aviva alone could face a ?75million bill by the end of the summer, while MoreThan owner RSA has confirmed that its costs have risen by about ?50million due to weather-related claims.

Higher premiums all round?

Insurers and those homeowners hit by the floods are not the only ones who could lose out due to the summer that never was, however.

Families who escaped the worst of the weather are still likely to bear the brunt in the form of higher home insurance premiums ? whether or not they were affected by the summer storms.

Insurers hiked their prices by about 10% after the 2007 floods. And even though this years total is not expected to reach the ?3billion mark, it does come on top of a surge in weather related claims in the winter of 2011.

Insurers may therefore put up prices, not so much to recoup losses as to prepare for possible future damaging events.

MoneySupermarket research shows that total weather related claims in the winter of 2011/12 were up 56% in comparison to those made in the winter months of 2010/11. The result was a ?1billion claims bill.

Sarah Bailey claims insurers have factored in the cost of flood claims to premiums, making a big hike unlikely: While these are the worst floods since 2007, they are not on the same scale, she said.

However, insurance analysts point out that companies were already expected to increase premiums by about 5% to 10% this year due to inflationary pressures.

And even the ABIs Bailey admits the extent of the summer flooding will have taken insurers by surprise. She said: Despite using a lot of data to try to predict severe weather, insurers would not have expected such widespread flooding this summer.

Grim forecast

With the risk of further floods this winter, insurers are therefore unlikely to leave themselves vulnerable to massive claims bills that are not covered by revenue from premiums.

Looking further ahead, 2013 sees the expiry of insurance industrys agreement with the Government to provide flood insurance even to those in the highest risk areas. The two sides are deep in negotiation to find a way to make cover available and affordable.

Concerns have been raised that low-risk households will effectively be called upon to subsidise insurance cover for more vulnerable properties. A progress report is expected in the autumn.

Whatever the weather, you dont have to accept higher premiums without a fight. There are lots of ways to keep your costs to a minimum, while retaining the level of cover you need to stay properly protected.

How to keep your home insurance costs down

MoneySupermarket figures show that the average Briton could save ?125 a year on home insurance by scouring the market for the cheapest deal.

The best way to fight back against premium hikes is to compare the quote you receive from your existing insurer with the rest of the market before taking out a new policy.

Sarah Bailey said: It is crucial to is shop around for cover, while ensuring you give insurers all the relevant facts so that they can arrange adequate and appropriate cover.

Shopping around is important even if you are one of the many who has had to make a flood claim as a result of the summer storms as insurers will still compete for your business ? albeit at a higher price.

For those who live in a flood risk area, it is also a good idea to look into insurer-approved flood prevention products that could slice 10% or more off the cost of your policy.

Sarah Bailey said: If you have to make a flood claim, your insurer should talk to you about flood prevention measures that can be used both to reduce the risk of further problems and to keep your premiums down.

Following this advice could therefore help you to keep insurance costs down and protect your home should more storms hit.

How to make a flood claim

Most major insurers offer a 24-hour emergency flood helpline. If your home is hit by flooding, you should call this number as soon as possible.

Other sensible steps include marking the water levels on the walls for reference and photographing or videoing all flood damage for which you plan to claim.

If you need any emergency repairs carrying out to prevent damage getting worse, it is also important to keep the receipts, as these will be needed for your insurance claim.

Finally, check whether your policy will cover the cost of alternative accommodation should you need to move out of your home while the flood damage is being repaired.

And dont forget to let the company know how to contact you while you are staying elsewhere.

Please note: Any rates or deals mentioned in this article were available at the time of writing.

Source: http://www.wahonobae.info/made-a-flooding-home-insurance-claim-its-still-worth-shopping-around/

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