Data from Compare the Market shows a significant increase in the cost of insuring homes that have previously been flooded, with premiums now 121% higher compared to homes that haven’t been flooded. The average insurance premium for a flooded property in January 2024 was £451, a £247 increase from the £204 premium for properties without flood history.
The rise in premiums coincides with a 170% increase in flood warnings from 2022 to 2023, influenced by severe weather events. The Environment Agency recorded 1,578 flood warnings in 2023, up from 584 in 2022.
Insurance for homes previously flooded rose by 28% since last year, and properties near water saw a 29% increase in premiums. Despite these increases, the difference between insuring homes near water and those further away is relatively small at £12.
Overall, home insurance prices have risen by £48 year-on-year. According to Compare the Market, homeowners could save by shopping around, with potential savings of up to £201 on their home insurance.
Helen Phipps, Director at Compare the Market, said: “With storms and flooding becoming more frequent, it’s a good idea to review your home insurance policy and to check if you are living in a flood-risk area. The home insurance market has seen a decline in the number of people taking out a policy over the last three years, meaning many households could be left uninsured, and out of pocket, if stormy weather or floods cause damage to their homes. The good news is that UK households seem to be taking action – we saw an 80% jump year-on-year in visits to Compare the Market for home insurance after Storm Isha this January.
“Flood cover is generally included as standard in most buildings and contents insurance policies, and will cover your home and its contents against water damage. Homeowners should note, however, that there can be important exclusions depending on their level of cover. For instance, most policies do not cover damage to parts of your home like fences, gates, and hedges. Comparing policies online could help you form a better understanding of the different options available, and you may find a deal that is more affordable or a better fit for your circumstances.”
