The impact of the recent floods which ravaged England will now be felt in consumers' pockets, with Norwich Union one of the first to announce a 10% average building and contents premium increase.
It says it will up premiums from Monday, affecting new customers and existing business on renewal.
“As we have a rating system which is increasingly able to reflect accurately the different risk in different areas, some people’s premiums will increase by less than the average and some by more,” Norwich Union says.
“Those who live in areas with an increased risk of flooding pay more, however those who live elsewhere are still at risk of flooding to some extent and this is allowed for in our rating.”
It added home and contents premiums generally remained untouched for about 10 years, and were due for review before the floods.
Norwich Union says the increases will reflect the increasing frequency and severity of weather-related events.
Those to recently submit a flood claim will be treated no differently, it says, while continuing to insure policyholders flooded more than once.
“If the authorities are unlikely to take action to reduce the risk of flooding in their area, we would expect homeowners to look at what flood-resilience actions they can take themselves, and we would support them with help and advice,” Norwich Union says.
“We may have to apply a larger excess in some cases as well as an increased premium, but we will always try to help people manage the risk so we can provide them with as much cover as possible.”
Flood cover will remain for properties currently insured, while new customers will be considered on merit.
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