Global Courant
Some homeowners won’t realize that some insurers offer cheap home insurance and cheap landlord insurance by doing away with flood protection altogether, or by raising the deductible beyond what would be considered reasonable and affordable.
No consistency?
The National Flood Forum reports that the problem of neighbors getting various flood insurance offers is widespread.
If you decide to compare your insurance policy with that of neighbors, make sure you don’t just compare the price, but consider all the factors that contributed to that price, for example itemized items or valuable content. The home insurance of landlords is priced differently than the regular home insurance. The age of the policyholder and previous claims also have an influence. Worryingly, the National Flood Forum encourages neighbors to think that everyone on the same street should pay similar premiums, home insurance differs from house to house, just like car insurance.
Risk features
Houses that look alike can present very different risks. For example, some buildings will subside and the house next door will not. Each home has different security features (key locks on the window and burglar alarm). Properties can have different materials used in construction (brick or natural stone, slate or tile). Policy can be reviewed on the bedroom; some insurers assess flood risk by height above the water table, it varies widely how insurers will assess risk and quote. The main reason why neighbors’ policies all have different premiums, despite having similar properties, usually comes down to the value of the home contents and the policyholder’s personal circumstances, including previous claims.
While these factors understandably all affect the premium, it does not excuse insurers from increasing flood risk without making it clear to the policyholder what they will have to pay in the event of a flood claim, or removing and reducing flood cover . all together! It certainly does not excuse the insurer for treating flood victims with poor customer service or delays. This is really what consumers should focus on: Am I adequately covered? Anyone living in a flood risk area should be aware of this and focus on what is included in home insurance – be it landlord’s home insurance or regular home insurance. If you have cheap home insurance – and you’ve sacrificed some quality to balance the premium – be prepared that in the event of a claim, you may not be as well protected as you’d like. It is essential that you seek advice and fully understand what is included in your policy and the claims procedures – this will avoid any unpleasant surprises! I am concerned about future flood casualties in regards to becoming uninsurable. Premiums will become prohibitively expensive for property and policyholders who have filed flood claims, especially in higher-risk areas.
The National Flood Forum reports variations in insurance companies’ treatment of flood victims
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