Catch 22 'jeopardises flood-plain insurance'
By myfinances.co.uk staff
Home insurance for residents of property in flood-risk areas can be put in jeopardy by the "Catch 22" situation that homeowners face, according to consumer watchdog Which?.
The organisation explains that householders face a dual dilemma when deciding who to arrange their home insurance with.
On the one hand, any information that is not disclosed from the outset can leave the likelihood of receiving a payout in doubt should flooding occur.
As a result, homeowners must ensure that their insurers are aware of any increased flood risk that their property might be subjected to.
Conversely however, some insurers will not provide cover for properties considered to be at high risk - again leaving the owner potentially unprotected against any disasters in the future.
Insurance market Lloyd's of London provides its members with a Flood Risk Tool to assess the possibility of flooding in any one area, allowing them to provide cover for properties there without adopting too high a level of exposure within their portfolios.
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