Property Owners Face Excessive Home Insurance Charges
Research performed by magazine Which? has revealed that where you live could greatly affect your home insurance fees.
At the moment many property owners who lie in their home insurance applications about living in a flood risk area could now face having subsequent claims made for flood damages dismissed by companies.
However, studies have found that many property owners don’t even realise that their property investments are classed as a flood risk…
During Which?’s article they revealed how certain insurance companies choose to assess flood risk based on a properties postcode.
Taking into account the postcodes claim history and the Environmental Agency’s flood data maps, property advisors main concerns are the fact that a typical postcode covers more than 20 property investments. Meaning many property investors could unfairly be charged extra on their contents and building insurance, when in fact they are at no risk of flooding!
And property advisors agree that this system is extremely inaccurate when property location i.e. living at the top or bottom of a hill, isn’t taken into consideration…
Luckily not all insurance companies follow this system. Aviva and Stroud & Swindon Building Society for example are believed to use a sophisticated mapping system that allows them to review an individual properties flood risk and not its surrounding properties. However, as this research clearly proves – it is incredibly important that when investing in property you opt for an insurance company who will judge your property fairly.
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- Property Investors Must Seek Out Landlord Insurance
- Off-Plan Investors Face Higher Stamp Duty Rates
- Non-energy Efficient Properties Face Mortgage Restriction
- What Influences A Property Owners Decision To Invest
Tags: invest in property, property advisors, property investment, property investors, property owners
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