11:39 17 May 2013
The unresolved issues between the government and the insurance industry on what is a reasonably priced premium for home insurance for flood-prone predicts that a sharp increase in premiums could be in the offing.
Homeowners in flood-prone areas are calling in droves for advice as they fear that they will no longer be financially capable to get insurance coverage for their homes starting July onwards.
The National Flood Forum (NFF) reported that troubled homeowners calling their hotline has increased three times last year as they report a sharp increase in insurance cost for their homes.
While others say that they cannot dispose of their properties as it is an important issue for the new buyer if they will be able to acquire coverage for the property.
Though it is not the government’s responsibility to sustain home prices, it will definitely be not good for the constituents to suffer a major devaluation of the 200,000 properties throughout the country.
Other individuals call as premiums for their home insurance has skyrocketed to unreasonable amounts while other insurers grill the homeowner with lots of question before they can renew their policies. These are all happening despite the enforcement of the 'statement of principles', which states that the insurance company should continue to provide coverage upon renewal.
NFF have received calls from distraught homeowners whose annual premiums have doubled to £2,000 and for some almost unbelievable cases, such as when a business owner was being charged £25,000 a year for his renewal versus the previous year’s £4,000.
The calls are even rising as the conclusion from the government talks and the insurance industry draws near.
Both parties, the insurers and the ministry, have not reached an agreement as of time of writing. Meanwhile, this impasse leaves thousands of homeowners chewing their nails and having sleepless nights in anticipation of what will happen next to their precious homes.
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