Home insurance premiums 'could rise significantly'

Other insurance companies are likely to follow Norwich Union's lead and raise home insurance premiums because of the recent flooding, according to Insurancewide.com.

The insurance comparison service said that while most homeowners will not see the ten per cent increase introduced by Norwich Union, they will nonetheless see considerable rises in their premiums.

Chief executive officer of Insurancewide.com James Harrison said that the recent floods may encourage specialist insurers into the market.

He commented: "Premiums offered by these specialist insurers are likely to be higher but should ensure that properties at risk of flooding are fully covered in the event of a disaster."

Such insurers may require homeowners to take certain precautions to make flooding less likely, he added.

Insurers are handling more than 50,000 claims as a result of the recent flooding, according to the Association of British Insurers.

People worried about damage to their possessions incurred by flooding may benefit from self storage.


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