Home insurance for house in flood area

Checkpoint_Charlie

Hello folks. I'm new and hoping some of you can share your experience and advice!


I'm buying a house in an area that floods.The house I'm buying has flooded once, though only in the cellar and only for 4 hours before it drained away. (The current owners didn't claim because it didn't do any damage).


Understandably the insurance companies are reluctant to give me cover and several have outright said they cannot give me a policy that includes flood cover. I have found one through an insurance broker but it's going to cost £1070 for the year.


Does that amount seem right? Does anyone else live in a risky area and if so, what do you pay? Does anyone know of other insurers who cover flood risk areas? (I've checked on Flood Re website, GoCompare, Confused etc - they all list insurers who supposedly will cover but when speaking on the phone they say they can't).


Many thanks!
CC

paddyandstumpy

Alot of insurers will use flood re to reinsure their existing book, but not be actively looking for new business in this manner.
As you will have seen on the flood re website the cost of the cede (this is how much it cost the insurer to reinsure the flood element of the risk) will vary by cover (buildings, contents or both) and council tax band of the property. The £1070 could include mostly cede fee, depending on cover and council tax.
Also, was the property built pre 2009? If not, flood re won't accept it which could explain the reluctance of insurers to offer cover.

Checkpoint_Charlie

Thanks so much for replying! Makes sense that they are listed as being part of the Flood Re scheme for existing but not new customers - I hadn't thought of that.


I've since had another quote for £600 which is better. They explained that the key thing is that the property has not had an insurance claim relating to flooding in the past 25 years; some insurers don't take that into account - they just see the post code and balk!

paddyandstumpy

Can I just say to be cautious about a quote that 'seems too good to be true'. It's normally with a company which the forum recommends avoiding. Who is the £600 price with?

It's hard to look past a price which is a lot cheaper than the market, but think of it from a different angle. Why is it so much cheaper?

Checkpoint_Charlie

It's with Home Protect - underwritten by AXA. Anyone have experience? (They seem pretty well reviewed online though I'm a rookie in the world of buildings insurance having only ever had contents)


Until 2 hours ago I would have thought £600 extortionate but after the £1070 quote it feels almost celebratory.