Should You Buy A Home In A Flood Plain Location?
Problems can arise if you are trying to insure a house you bought in a flood plain area of some sort. Over the years alot of people have purchased houses in flood plain areas of the UK. Many years have gone by with no troubles.
Due to the fact that the UK in the past had not suffered from a lot of flooding in the past, when the floods arrived in the summer of 2007, many UK resisdents were caught short. It was thought that £3 billion was lost to the insurers with all the claims. There were not so many claims in Milton Keynes but other areas were hit hard with lots of damage. When the public then came to renew their insurance polices, problems arised. There would be no problem with the present insurance companies keeping your insurance policy going, only when you come to renew the policy the premiums can raise with little choice of shopping around.
As there are around 2 Million homes on some sort of flood plain or at risk of coastal flooding, the insurance companies are a little worried. Thats about ten percent of the homes in the UK. Also around 400,000 homes are in a very high risk area which equals to 1 in 75 chance of flooding.
What can be done? If you already reside in a flood plain you may have to live with the high premiums. When someone buys your accommodation, your insurance company would have to supply them with cover as well.
If you are thinking of buying a new house then it is better to try and not buy one in a flood plain area. Having a detailed survey conducted will show you if the house lies in a flood plain area. To find out if the house lies in a flood plain area you can also check yourself, by searching on the Environment Agency’s website before you go too far ahead with the purchase. Looking forward to the future this is probably the best answer.
