An agreement regarding flood insurance between the government and the Association of British Insurers has been supported by AA Insurance.
The agreement will ensure there is a much better understanding of the risk of flooding in different areas as well as improving the accessibility to home insurance for households on low incomes. There will also be changes to the planning system said A Insurance to ensure developments are not placed in areas where the risk of flooding is high.
A spokesman from AA Insurance said that providers of home insurance, like themselves, are well aware of the greater risk of flooding that faces the UK and are structuring their premiums accordingly. Although the premiums will be higher than previously the good news is that cover will still be provided, something that was a concern previously when it was suggested some areas would be uninsurable.
AA Insurance has asked the government to continue investing in flood defences as well as suggesting local councils should not approve building in high risk areas.
The floods of last year were exacerbated by the inability of the drainage systems to take the water away, aspects that the government can have a big say in. Around 180,000 claims were made last year following the floods said AA Insurance, costing insurers some GBP3 billion. There were also many people without home insurance who suffered as well, highlighting the need for both buildings and contents insurance to protect the most valuable assets people have.
Looking to the future there may be a situation where insurers like AA Insurance and others refuse to cover people for flood damage unless steps are taken to improve the defences available. Such a scenario would be a nightmare for homeowners of course. An alternative may be higher premiums, though the increase would be large in order to cover the potential risk, again leading to many consumers being unable to afford the cover they need.
According to data collated by the Halifax home insurance division people in the UK have a bicycle stolen at a rate of just over one every minute.
The actual rate is one every sixty-five seconds, worsening from one every seventy-one seconds last year. The data also shows that London is the most dangerous place to own a bicycle, perhaps unsurprising as the bike is a popular form of transport in major cities like this. A Halifax spokesman suggested a simple way to cut the rate of bike theft would be to use a simple U shaped lock when the bike is left unattended.
The Halifax insurance spokesman also suggested looking at garden security, since many bicycles are kept in garden sheds or just in the back garden itself. Simple security is not expensive and could mean a home insurance claim is not needed.
