Insurers Looking at New Ways to Hike Insurance Costs?

One of the largest insurance companies in the UK is calling for the
government to introduce a flood rating system for homes. Aviva says that
this will help prospective buyers and tenants make an informed decision
when looking for a new home. However, critics are concerned that this
extra information will

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provide an excuse for insurance companies to hike
the cost of insurance for poorly rated homes in flood risk areas of the
UK.

Aviva Speaks Out
The chief executive of Aviva, Mark Wilson, is also calling for the
government to prevent developers from building on flood plains, which
are the first place to flood when rivers overflow.

“Better quality and more accessible data should be made available,
especially to buyers. Planners should also halt building on defenceless
flood plains,” says Wilson.

“Around 200,000 homes have been built in the past decade and many face a
significant flood risk. It’s time builders and the government put a stop
to this.”

More Costs for Landlords
Thanks to the recent flooding woes and bad storms across the south of
England, UK insurance companies are now facing a huge volume of claims
for damages. Insurers are already being forced to provide insurance
for homes in flood risk areas, as per the government Flood Re scheme, so
if a ratings system is introduced, it could mean that landlords are
obliged to pay for a flood rating certificate, too, which would be yet
another cost to bear.