[jchrist81285]

People who live on flood plains or who have already been flooded, cannot get insurance according to the ITN news tonight. What are people supposed to do in those cases?

[newsbusters.org]

almost every household insurance policy excludes flood damage - everyone knows that when they pay their premium they have an option to add on flood damage but at a much higher premium.
Consider it an act of god which could have been much, much, worse. Remember its only possessions/money - its not life/health which is far more important.

[Todd]

Hi Hun, I give up with insurance. I saw that on the news as well. I have been insured for many years now and tried to claim recently for a damaged beam, literally holding the cottage up. Battled but lost and had to pay for it myself. Horrendously expensive plus everything is covered with building rubble I am now re-decorating myself. I cannot see the point in insurance but it is I believe illegal not to have your house insured. Heads they win, tails you lose. I am totally disillusioned but as has been said it is only possessions and money and not my health or life (apart from completely losing my temper). Anyway I shall end up with smart crisp re-decoration and disposing of lots of clutter which will save on cleaning time. Plus no more insurance premiums to pay because I am can celling, let the people who work in the insurance companies pay for their smart cars etc with someone Else's money. I quit.

[thomy8s]

Assuming you're in the UK, because you didn't post a location . . .it's a big problem.

That's why in the USA, you can ONLY buy flood insurance through a government program. Private insurance companies can't make enough money off the premiums to pay the claims. Now you guys are in the same boat.

I'd suggest contacting your governmental representatives, and asking them to put a "flood program" in place, similar to what we have here in the US.

[festy1986]

Move!

Actually those who already have insurance will probably be offered amended terms by the insurance company - this will probably involve a high excess (being responsible for the first e.g. ?5,000 of a flood claim) and a maximum payout for flood damage. Those without insurance won't be able to get cover.

My current thoughts is that the Government may set up pool (like they did for terrorism) and people may be able to buy separate flood insurance if they think they need it. I suspect that the cost could be quite high - probably in the region of ?500.00 for the most likely areas to be flooded (this may be means tested - people on benefits should be covered free). I assume that once this is set up the Government won't give help to those who don't buy the cover.

The funds raised could I suppose be used to increase flood defenses.

A more likely scenario is that the Government will use the floods as a pretext to raise insurance premium tax to 10% with the ostensible reason to provide a fund for flood victims and to improve flood defenses - it would be a characteristic response.

With so many home insurance providers in the market, I do not think that there will be a big increase in house premiums for those of us on high ground. Many insurers won't have covered much property in the fold plains due to underwriting criteria and they will be able to offer similar premiums to last year - the others will have o follow suit to retain business.