Household insurance hope for flood-risk homes

Posted : 09-07-2008

People living in flood-risk areas may still be able to take out an adequate household insurance policy, according to a new report.

Moneysupermarket.com compared household insurance premiums for Tewkesbury - a high-risk area - from 2006 and 2007.

The firm discovered that homeowners who had not made a claim for flooding in the region were able to obtain "competitive" quote.

However, those who had made a previous claim were restricted to a limited number of household insurance providers.

Commenting on the findings, Peter Gerrard, head of insurance research at moneysupermarket.com, said people can "take some reassurance" from the company's study.

"It is not all bad news - even if a claim has been made for flood damage, and only a handful of insurers will provide a quote - premiums remain incredibly competitive, highlighting the benefit of shopping around for your cover," he remarked.

According to the Association of British Insurers, insurance firms paid out £3 billion in claims following last summer's floods.


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