Will it remain feasable for those houses in regions susceptible to floods to be insured against flood damage? Or will the insurance premiums go up so much the home owners might find it difficult to find buyers to sell their houses to? Would that eventually affect house prices? Cheers.
2007-07-22 16:07:35 · 9 answers · asked by Part Time Cynic 7 in News & Events ➔ Current Events
The biggest problem in the UK is a lack of land suitable for building. New housing is being built on recognised floodplains bringing with it the obvious dangers seen in the past few weeks. The Governments gamble that flooding would not occur has back fired. Despite this they are still planning on building more, the consequences of which are plain to see.
A lot of this housing is impossible to insure against flooding simply because of where it is built and the insurance companies are saying they will not renew policies for many that have suffered.
You are required to declare if your house has suffered from flooding or is in an area regarded as being at risk when you sell.
This will eventually reflect in the value of all property causing that at risk to devalue whilst that considered safe will increase spurred on by the increasing shortage of housing and areas considered to be at low risk of flooding.
2007-07-22 22:21:25 · answer #1 · answered by one shot 7 · 1⤊ 0⤋
The recent floods will start a chain reaction throughout the Country as far as Insurance goes.Their may well be a clause in all policies excluding flood cover,unless a high premium is paid.It seems nowhere is safe from flooding and apart from massive damage to homes across the Country the actual infastructure has took a beating.As to a decrease in house prices I dont think so because everywhere will be suspect.It is a frightening time ahead for Insurance Premiums to rise to record high levels.Building and contents cover have always been at a reasonable price level in the Uk,and the latest events will push up premiums.it is a fact of life we have to endure.
2007-07-22 16:40:27 · answer #2 · answered by realdolby 5 · 2⤊ 0⤋
I'm so glad I recently got an insurance quote which is valid for 90 days. I'm so so glad.
Insurance companies are sure to put up premiums for all of us to take care of the mess that comes with building homes in areas which are liable to flooding. They know that some areas flood badly in a cycle like once every 50 years. Just cause it's 50 years... doesn't make it right to build houses there.
You have to be mental to buy in an area that is at risk of any flooding imo. A totally mental basketcase.
BTW - UK Gov shares a scheme with some insurance companies to force the market to insure areas at risk of flooding. UK Gov picks up some of the tab... but the insurers still hate it.
2007-07-22 16:12:13 · answer #3 · answered by golfgirl 3 · 1⤊ 0⤋
The August edition of National Geographic tackles this subject on several levels concerning New Orleans. Constant flooding or devastation by storms do affect housing prices - it can depress the market - due to the high cost or impossibility to acquire certain types of insurance protection and the lack of buyers, but a wealth of sellers of homes. Nature is the ultimate WMD.
2007-07-22 16:12:46 · answer #4 · answered by Zombie Birdhouse 7 · 2⤊ 0⤋
I think the flooding is on such a scale now, yes I think that is a liklihood. I am sure everybody now who is going to buy a house will want to look into the flooding issues for that particular area. The trouble is that the houses are usually situated in such areas of outstanding beauty i.e. Gloucestershire they will be hard to resist, so will people just shrug their shoulders and become fatalistic and take a chance on buying just to live in such a place. Did it affect the house prices in previous flood areas i.e. Carlisle?
2007-07-22 20:34:25 · answer #5 · answered by shafter 6 · 1⤊ 0⤋
The flood cert fee is merely a junk fee maximum all lenders fee for finding up FEMA flood maps to work out if a components is in a flood zone & what type for coverage. The maps are obtainable on line for unfastened at FEMA. Why lenders nonetheless fee for this I have no concept. Your coverage corporation additionally ought to have been interior the loop approximately this or no longer & caught the errors. it fairly is too late now to stress approximately your appraisal fee in case you have already closed on your place. you are able to look on your appraisal & see if the appraiser made any adjustments in fee for that reality. i do no longer think of they do, yet i'm no longer an appraiser. additionally, the appraiser ought to have been waiting to tell while they went out to do the appraisal of what the likelyhood could be of a flood, fairly in the event that they're responsive to the area & have executed value determinations in that community before. in case you have no longer yet closed, lower back, examine on the appraisal & see if an adjustment became made for this. if so and it makes a distinction on your very own loan, have it replaced. specific, you nonetheless ought to pay the flood cert fee. Flood existence of non-public loan Certification fee is senseless to me. in the journey that your living house isn't in a flood zone now, why could every physique ought to certify that for something of your very own loan & fee a cost for it? If it fairly is no longer numerous money, i does not difficulty. it fairly is this is a pair hundred dollars, i could attempt disputing it.
2016-10-22 09:30:24 · answer #6 · answered by ? 4 · 0⤊ 0⤋
I think so! If homes become uninsurable, which some of these surely must, then the prices would have to drop.
Grateful I live at the top of a hill this week - my area is a dreadful mess :(
2007-07-22 16:10:42 · answer #7 · answered by Sal*UK 7 · 2⤊ 0⤋
it is often harder for previously flooded houses to sell as there are concerns about it happening again, and some comapnies won't insure a previously flooded house
2007-07-22 16:10:48 · answer #8 · answered by rose_merrick 7 · 2⤊ 0⤋
s.. of course... j
2007-07-22 17:56:04 · answer #9 · answered by Jraj R 2 · 0⤊ 0⤋