Experts have issued a warning
A straightforward check could save homeowners from a financial catastrophe following weeks of storms and flooding that have battered large swathes of Britain with severe weather. Experts warn that thousands of families may be paying for home insurance that won’t cover them when disaster strikes, simply because they’re unaware their property is located in a flood risk zone.
Research from the Department for Environment, Food and Rural Affairs reveals that two-thirds of households in designated flood risk areas don’t realise they’re in this category, sparking concerns that many policies could be invalidated when claims are submitted.
Holly Andrews, Managing Director at KIS Finance, warned that the consequences of not understanding – and disclosing – flood risk could be catastrophic.
She said: “Far too many homeowners don’t realise the importance of understanding their property’s flood risk, and unfortunately, this is having devastating consequences.
“If your home falls within a designated flood risk zone, this can have a direct impact on your insurance cover. “Failing to disclose this crucial detail when arranging or renewing your policy could leave you dangerously exposed, as insurers may refuse to pay out on claims or even void the policy altogether.
“Essentially, you could lose the financial safety net you thought you had in place right at the moment you need it most. And flooding doesn’t just damage your property, it can derail your wider finances.”
Ms Andrews cautioned that when insurance claims are turned down, families are frequently left with little choice but to take out loans or dip into their long-term savings to fund repairs.
She continued: “Homeowners often end up taking on debt or dipping into long-term savings to cover repairs when insurance doesn’t pay out, and this can have a knock-on effect on their financial stability for years.”
Nevertheless, she emphasised that a swift January check could prove crucial.
“Thankfully, checking your property’s risk status is simple and free. The Environment Agency provides detailed online flood maps that allow homeowners to search by postcode and see if they fall into an at-risk category,” she explained.
“This quick check gives you the information you need to make sure your insurance policy is accurate, valid, and offers the protection you expect.”
Details about whether a property sits within a flood risk zone can be accessed here. Property owners who find themselves in a flood risk area should notify their insurer without delay, even if this results in marginally higher premiums.
Ms Andrews advised: “If you do find that your home is in a flood risk area, it’s essential to inform your insurer straight away and ensure that your cover reflects this reality.
“Being transparent about your risk may increase your premium slightly, but it’s far better than facing the long-term financial consequences of voided cover.”
She further cautioned that the repercussions can plague homeowners for years to come. “What many don’t realise is that rejected claims can affect your ability to secure insurance in the future, potentially limiting your options for years to come.
“Being proactive could save you from enormous financial loss and emotional stress in the future. It’s always better to know your risk and be fully protected than to discover too late that your cover won’t pay out.”
