Money Help Desk: It never rains but it pours

I LIVE in an area that has seen a couple of floods over the past decade. The last time was a year ago and, I have to say, the insurance company was very good at helping me sort out the claim. I have no complaints on those grounds.

But I was horrified to find that on renewal my premium had gone up by more than 600 and I have a 1,800 excess on flood damage. I have, of course, tried to find a cheaper insurer, but as soon as I say 'flood' they won't even consider offering cover. I also tried a price comparison site but clearly my postcode tells them that I'm in a flood-risk area.

I'm concerned that insurers are trying to price people out of the market if there is a risk of them being flooded. More importantly, I'm very worried about whether I could ever sell my house if it can't easily be insured.

MH

Ian Crowder, insurance expert at the AA, writes:

Sadly, this is a predicament that is affecting a number of people. There is an agreement between the insurance industry and the government (the Association of British Insurers' 'Statement of Principles') to ensure that people in flood-prone areas who are already insured will continue to be able to get cover from their existing insurer.

Your insurer may have put up your premiums but some have increased them by much more than that and, in truth, the premium doesn't really reflect the cost risk of future flooding.

You would be well advised to stick to your present insurance company and they will continue to protect you for future flood events, even though your excess has significantly increased. I have heard stories of some people's flood excesses going up much higher – in some cases as much as 10,000.

There are measures you can take to protect your home from future flood damage. For example watertight doors, surge protection on sewerage pipes and air-bricks that prevent entry of water. Your insurer can advise you where to go for such work and should reflect the measures you have taken with a reduction in premiums.

As it happens, flood protection is much in the news at present with the Committee on Climate Change having just issued its warnings about how the UK is likely to be affected in future.

AA Insurance is urging the government not to cut spending on flood defences in the autumn spending review – if they do, it could mean many homes will become uninsurable.