Flood insurance: Residents left high and dry as last low-cost insurer gets out

Householders in flood-hit properties were dealt one more blow with their find it hard to get insurance among the last remaining insurers prepared offer them cover has changed its stance.

Sainsbury’s Finance offered low-cost insurance to homeowners and tenants whose properties had previously been flooded, whereas many other major insurance carriers turned them. Based on the National Flood Forum, a charity offering advice and support to communities and the wonderful vulnerable to flooding, or who’ve been flooded, Sainsbury’s perceived to offer cover to nine away from 10 people it sent its way.

The policies were underwritten by Halifax Insurance. Playing with the past few weeks the bank account has changed its underwriter to RBS Insurance, which looks like it’s declining a lot of flood cases the charity sees.

Chris Wright, who works with insurance queries with the National Flood Forum, says: “Towards eliminate not too long ago around 90% of those that arrived at us struggling to get cover were then subsequently granted cover by Sainsbury’s. Some had made phenomenal savings by going to Sainsbury’s. Now we’re desperate for an insurance provider that is unique.”

She adds: “Since the bank account has evolved underwriter our obligation has grown to become a great deal of harder. Now I understand it does not quote for anyone that is flooded in the last Ten years.”

While many householders are struggling to get insurance, while others are offered cover at a price they can not afford, everything’s set to even more difficult after June next year whenever a voluntary agreement between the insurance industry along with the government ends.

The Association of British Insurers warned recording that about 200,000 homes in Wales and england will find it hard to obtain adequate flood insurance next season. The current agreement states that insurers must include flood cover as standard for properties built before 1 January 2009, the place that the risk of flooding is low. Crucially, insurers need to allow at-risk households who actually have flood cover to resume automatically with the exact same insurer, provided that flood defences are planned to remain place within several years.

The industry as well as the government can be stuck a battle over what happen next, with insurers not wanting to always offer cover without government commitment on flood defences.

RBS Insurance says: “We are already using the services of the Association of British Insurers for quite a while, in order to influence government in connection with the provision of your sustainable national cover flood prevention as well as to maintain commonplace and affordable flood insurance for anyone customers. The actual Statement of Principles is unfair to consumers and then to insurers, as it will not offer the level playing field which most of us expect. This case needs urgent attention. We can continue trying to find a method for this dilemma, because 2013 deadline for that termination in the Statement of Principle (flood insurance) agreement is fast approaching.”

Wendy Walters, 62, from Hull was on the list of householders helped by Sainsbury’s. She and her husband lost all things in the floods that hit metropolis in 2007, including their favorite pet budgerigar.

“The fireman must carry me out of your property that i’m not steady in this little feet,” she says. “We were out of the house for a year although it was repaired, but luckily our insurance covered everything.”

However, should the couple reached renew their insurance broker quoted limited of

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