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Home / Property Insurance / Buy To Let Insurance / Assetsure Home Insurance Survey – Attitudes to Flooding

Assetsure Home Insurance Survey – Attitudes to Flooding

Assetsure has recently undertaken a small survey of visitors to our website, regarding the topics of climate change, flooding and insurance. The results are quite revealing and many respondents were very forthcoming with their views on homes located in areas that are at a higher risk of flooding. The full results are published below.

Visitors were first asked if they were worried about the effects of climate change and surprisingly, over half said they were not. Next we asked if it was thought that climate change would affect insurance premiums and 76% thought that it would. This seems to suggest an element of inevitability about increasing insurance premiums and a perhaps a certain amount of indifference to the possible effects of climate change in general.

More than half of respondents, did not know if their property was located in a flood zone or not, a very high proportion, especially when the information is freely available online and can be obtained in a matter of minutes. Again, over half of those who replied, carry out no maintenance on their property in order to reduce the chances of the loss but this may be down to experience of the area in which the person lived or the presumption, that Ive not been flooded before, it’s not going to happen to me

One of the most contentious questions related to the subsidising of insurance costs of homeowners in higher rated areas by homeowners in low rated areas, not surprising, a huge 78% was against this and this question brought forth some of the most strong comments. The majority of homeowners probably do not realise, that the nature of pooling by insurers means that risks are already being subsidised, to a certain extent. The majority of respondents, 72% thought that the government should set up and underwrite a scheme for properties in high risk area.

There was strong opinion, when it came to the matter of planning, 77% of persons who responded thought that local authorities should not approve building applications where the proposed new build is located in a flood zone. Confidence in insurers’ ability to pay claims was high at 72%, when it came to the cost of flood claims; only 24% correctly knew that the average cost of a flood claim is in excess of £20,000.

Question

Yes

No

Are you worried about the effects of climate change?

48%

52%

In the future, do you think climate change will affect your insurance premiums?

76%

24%

On average how much do you think a flood claim costs?

Up to £5000

24%

£10- £15,000

24%

£15-£20,000

26%

£20,000 +

26%

Do you think the government should set up and underwrite a scheme for properties in high risk flood areas?

72%

28%

Should insurers increase premium for homeowners in lower rated flood areas to subsides owner of property in higher rated areas?

22%

78%

Do you know if you property is situated in a flood zone?

46%

54%

Do you undertake regular maintenance at your property to help prevent flooding?

49%

51%

Are you confident your insurer will pay out claims for flood related damage?

72%

28%

Should local authorities approve building applications where the proposed new build is located in a flood zone?

23%

77%

The online survey polled 176 people who asked Assetsure for an insurance quotation over a six month period in 2010.

A Selection of Comments from Survey Participants.

  • “Climate change is not something that will effect our daily lives for at least 100 years, if at all. The suggestion that climate change has anything to do with floods or any other natural event is grossly overstated and has no foundation. It is a lack of investment by a succession of governments that has exacerbated the problem. Developers should be forced to indemnify homeowners for flood if the developer builds on a flood plain and not insurance companies”
  • “Homes should not be built in flood zones at all”
  • “I reckon that people who knowingly buy property in flood prone zones deserve all they get, and why should I pay for their stupidity. I wouldn’t build a house on airport runway knowing the likelihood that it will be damaged by a landing jumbo jet the same goes for building a house on a flood plain”
  • It is a national scandal that local authorities have and are continuing to grant planning permission in known flood plain areas. Why should the rest of us pay for this, disgraceful”
  • “Individual homeowners should recognise and accept the increased risks if they choose to live in recognised flood zones. Planning authorities also have a responsibility to mitigate risks when considering planning applications in areas which are prone to flooding because, if they don’t do so, the costs are borne by all tax payers.”
  • “Owners can elect NOT to purchase if flood zone areas, however local authority tenants do not have this option and local authorities should be penalized for building on known flood plains”
  • “It is absolute madness to allow building on flood plains. It WILL get worse and is just misery for householders”
  • “Minimum flood defences should be made compulsory by Planning authority for properties in flood zones.”

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