HOMES flooded for the first time can expect their insurance premiums to triple to almost £1,000 if they make a claim.
More than 1,800 properties have been flooded since the start of the year, according to the Environment Agency. And with the UK Health Security Agency issuing a weather warning for all homes until Friday afternoon, the number claiming damage to their homes and property for the first time is expected to number in the thousands.
More than 3.4 million properties in England are at risk of flooding, according to the agency.
According to the trade body Association of British Insurers (ABI), the average annual cost of home insurance rose to its highest level – £315 – last year. It means that for those who become inundated, typical premiums could rise to almost £1,000 a year.
The ABI says it costs an average of £33,600 to repair a flooded house and that recent storms, starting with Storm Babet in October, have led to £352 million in claims.
Matthew Bloodworth in his flooded home opposite Tewkesbury Abbey in Gloucestershire after Storm Henk hit Britain last week
Fields on the outskirts of Gloucester were flooded yesterday as days of stormy weather and heavy rain took their toll across the country
Anna McEntee, home insurance expert at comparison website Compare the Market, agreed that climate change – including flooding – is likely to be a factor in the rise in the cost of home cover for those forced to make a claim.
She says: 'If you live near water, your home insurance premium may increase as insurers view this as a greater flood risk. But you could spend even more money if your home isn't adequately insured. It's definitely worth shopping around to get the best deal.'
Money Mail research has found that in some cases households have already tripled the price of buildings and contents, with 'weather patterns' – including the risk of flooding – cited as the main reason. This is before filing a claim.
Barbara Penhallow saw her annual home premium with Axa-owned Swiftcover rise from £178 to £542 for her £500,000 home in Croydon, south London, last year. She was told that 'floods and unexpected storms' contributed to this.
Online boutique owner Helena Adams, 66, saw cover for her £575,000 property in Harrow, North West London, rise from £291 to £687 with insurer Esure, with a letter saying: 'Due to changes in weather patterns we have risk associated with your property.'
Insurer Axa admits that it takes into account a 'large number of factors', including floods, unexpected storms and cold waves, when calculating annual premiums. Aviva says 'severe weather' is a contributing factor, while Admiral says 'future weather, such as floods and storms, is factored into our pricing methodology'.
Research firm Consumer Intelligence found that home insurance quotes rose by an average of 26 percent last year – with 'wetter winters driving up flood claims'.
Insurance companies are expected to use the recent rains and storms as an excuse to increase premiums for those forced to make a claim.
A children's playground in Quarry Park, Shrewsbury, was flooded after the River Severn burst its banks when Storm Henk hit Britain last week
The government's Flood Re program aims to make homes more affordable for people living in areas at high risk of flooding, but typically only covers homes built before 2009.
Although the scheme allows homeowners to take out insurance, with prices linked to their council tax band, the number of insurers offering cover is limited. Flood Re also has a Build Back Better scheme offering homes up to £10,000 to better protect their properties from future flood damage.
In addition, following Storm Babet in October, the Government is encouraging owners of flood-affected properties to apply for up to £5,000 as part of a Property Flood Resilience Repair Grant Scheme.
Heather Shepherd, operations director of the National Flood Forum, believes such support does not go far enough and fears it could allow the insurance industry to exploit homeowners with unnecessarily high premiums.
She says: 'There will undoubtedly be new people making claims this year – and they will be in for a nasty surprise.
“We are in an endless battle with the government to come up with a better plan to tackle flood-risk properties. Insurers are not charities, so you can expect them to profit from flooding. But I would much rather they push the government to support homeowners.”
Two cars were left abandoned in a flooded car park near the River Thames in Oxford on Sunday after a week of heavy rain saturated the land
James Daley, of consumer website Fairer Finance, believes climate change should already be factored into premiums – and that insurance increases often have little to do with the weather.
Consumer rights rules were introduced two years ago by the Financial Conduct Authority to prevent insurers from exploiting loyal policyholders with higher premiums than those paid by new customers. Although the regulations were well-intentioned, insurance costs have increased across the board since they were introduced.
Louise Clark, general insurance adviser at the ABI, said: 'Insurers expect bad weather to strike at any time. The priority at this time is to help affected customers recover as quickly as possible.
'If you have been affected by a flood, contact your insurer as soon as possible. They can help and advise you.'
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