Some homeowners may not realize that some insurers are offering cheap homeowners insurance and cheap homeowners insurance by eliminating flood protection altogether or increasing the excess beyond what would be considered reasonable and affordable.

No consistency?

The National Flood Forum reports that the problem of neighbors getting different offers on flood insurance is widespread.

If you decide to compare your insurance policy with your neighbors, be sure to not only compare the price, but also consider all the factors that have contributed to that price, such as specific items or high-value content. Homeowners home insurance is priced differently than regular home insurance. The policyholder’s age and previous claims will also have an impact. It is concerning that the National Flood Forum encourages neighbors to think that everyone on the same street should pay similar premiums, home insurance varies from home to home just like car insurance.

Risk characteristics

Houses that look similar can have very different risks. For example, some properties will be subsidized while the house next door will not. Each property has different security features (key locks on the window and burglar alarms). The properties can have different materials used in the construction (brick or stone, slate or tile). Policies can be categorized by bedroom; While some insurers assess flood risk by height above the water table, the way insurers assess risk and quote varies widely. However, the main reason neighbors’ policies have different premiums despite having similar properties usually comes down to contents value and the policyholder’s personal circumstances, including past claims.

While all of these factors understandably affect the premium, it does not excuse insurers for increasing flood excesses without making it clear to the policyholder what they are expected to pay in the event of a flood claim, or removing and reducing the level of flood coverage. total! It certainly doesn’t excuse the insurer for treating flood victims with poor customer service or delays. This is really what consumers need to focus on: am I adequately covered? Anyone who lives in an area with a risk of flooding should be aware of this and should focus on what is included in the home insurance policy, whether it is homeowners home insurance or regular home insurance. If you have a cheap home insurance policy, and you’ve sacrificed some quality to balance out the premium, you should be prepared in the event of a claim that you may not be as well protected as you’d like. It is essential that you seek advice and fully understand what is included in your policy and what the claim procedures are. This will eliminate unpleasant surprises! I am concerned for future flood victims that they may not be insured. Premiums will become unaffordable for properties and policyholders who have filed flood claims, especially in the highest-risk areas.