Residents in North Yorkshire are still reeling some five years after floods hit their property – as insurance costs continue to spiral.
Flat owners at a development in Topcliffe, near Thirsk, saw river levels rise near their homes back in 2012 – and their annual insurance bill is said to have risen from £1,500 to £26,000 since.
Speaking to the BBC, Martin Graham, who owns a flat in the block, commented that the cost of insuring the homes is now “unsustainable” with the owners dividing the cost across 12 flats and each paying a £400 monthly service charge.
“It’s a significant impact on the finances and people are struggling to make those payments,” he said.
“I know some owners are attempting to sell their flats, but they will be selling them at a loss. Because anybody who is out there looking to buy a property are not only looking at what the purchase price would be, but the service charge on top of that - and that would put a lot of people off.”
According to local Conservative MP Kevin Hollinrake, the tenants were caught out by a “gap” in the Flood Re scheme which is meant to provide insurance for homes that are at a high risk of flooding.
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“Unfortunately this block is not covered by it because there are more than three flats,” he said.
Hollinrake added that he is attempting to get insurers to extend the scheme.
In reaction, Mark Hoban, chairman of Flood Re, issued the following statement to Insurance Business.
“Flood Re was set up for householders in flood risk areas of the UK that were struggling to find affordable flood insurance," he explained. "In its first six months in operation, the scheme had taken on over 53,000 policies, Flood Re is changing the market for those living in flood risk areas across the UK. It is important to remember that, if you are living in a flat, you can get contents insurance that is backed by Flood Re.
“Our priority is to ensure that people living in areas at risk of flooding have more affordable flood cover. The British Insurance Brokers’ Association has recently announced the launch of a new commercial insurance scheme for businesses that will also include flood cover for many commercial premises and residential leasehold blocks in flood risk areas.
“Householders in flood-prone parts of the country should check the Flood Re website to see which insurance providers are participating and find out more about the Scheme. Those with insurance should speak to their current provider and everyone should be prepared to shop around as the market is becoming increasingly competitive. When buying a policy, people in flood-prone areas should make sure it is the best one for them.”
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