ROOF Blog

Three weeks after last month’s devastating Cumbria floods, the Environment Agency is urging owners of damaged properties to insist that insurers repair their homes and businesses to be more flood-resilient.

Properties affected by flooding are often simply returned to their previous state, meaning that similar damage is likely if flooding occurs in future.

Repairing a property that has been flooded offers a chance to minimise the damage and disruption that could be caused by any future flood.

The Financial Services Authority has warned a number of insurers have recently increased the premium charged for mortgage payment protection insurance or reduced the level of protection offered, at a time of rising unemployment. The City watchdog said some insurers have increased premiums by between 30 and 50 per cent, while others have cut the maximum monthly payout and increased the waiting period before people can claim from 60 to 90 days.

Nearly one in four people have cancelled their home insurance in a bid to save money during the recession research from the Association of British Insurers found. Around 22 per cent said they had either cancelled or not renewed their home contents cover in the past 12 months, and a further 17 per cent no longer have any cover. People living in Scotland are the most likely to cancel or not renew their cover.

Millions of people who bought insurance to pay their mortgage if they become ill or lose their jobs, are facing rises of up to 40 per cent in their monthly premiums. Insurance companies are blaming the increase on a rising number of claims. Figures from the Association of British Insurers show a 200 per cent increase in claims on mortgage payment protection insurance during the past year, and applications for policies are ‘soaring’.