Tell ministers and low lying home owners exactly how it is.
It never just rains attacks on insurers. It pours.
Once again government ministers, under pressure form local papers, are attacking insurers for hiking prices on flood-risk homes, withdrawing cover or failing to put-up flood victims in luxury hotels.
It’s time to stop being the whipping boy.
If you live is in an urban area that has a high risk of crime, you not only pay more for your car and home insurance, you are required to fit extra security devices and take additional precautions. And failure to do so is ample excuse for an insurer to either refuse to pay out or to refuse future cover – or both.
Why can the insurance industry not do the same for flood-risk areas? Insist on additional measures to avert flood risk and modifications to buildings to minimise damage and also demand reasonable claims reducing actions from home owners. And ramp up the premiums at the same time.
People in low crime areas do not subsidise the theft and burglary risks of those in high crime areas so why should those who live on top of the hill subsidise the flood-risk homes at the bottom?
It’s time the industry was allowed to underwrite accurately – even if that means no flood cover for some.
