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September 02, 2007

Well, Yes

In Hull, residents living more than a mile from the river have been told their premiums will double. Pauline Chadwick, 55, who was not affected by this year's flooding, said her home was protected by flood defences yet her premium still rose.

She said: "Before the flooding in June, I was paying £25 a month, but I then got a letter saying that because my premises were in a high-risk area, the cost would be going up to £53 a month. They just seem to be punishing people who live in the same area that flooding occurred."

What does anyone expect insurers to do? If events show that the risk of flooding is higher than previously believed then of course premiums will rise.

Although I'm certain there's someone out there thinking that as the flooding shows that insurance is even more necessary then the price ought to come down.

September 2, 2007 in Current Affairs | Permalink

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Comments

Although I'm certain there's someone out there thinking that as the flooding shows that insurance is even more necessary then the price ought to come down.

Is this an allusion to "economist" Stephanie Flanders desperately silly questions to Cameron on last Wednesday's Newsnight? In any case, how come you haven't commented on it yet?

Tim adds: Because I didn't see it? Never do watch TV....well, not unless it's the rugby.

Posted by: windowlicker | Sep 2, 2007 10:42:46 AM

Insurancde premiums (premia?) are a very useful guide as to whether local authorities should be spending on flood defences.

As long as local property owners are paying this via land value tax, the cost:benefit analysis is quite simple.

Posted by: Mark Wadsworth | Sep 2, 2007 11:58:37 AM

So, one insurance company has put up its premiums probably based on a blanket decision made elsewhere by some accountant.

I spot an opening for another insurance company prepared to hire someone with a degree in say geography (or at least the ability to understand contour maps) to do their risk assesments.

It's called the free market.

Posted by: The Remittance Man | Sep 2, 2007 10:38:41 PM