House insurance premiums not necessarily rising

The Association of British Insurers (ABI) has said victims of the flooding to happen in the UK over the summer will "not necessarily" have to pay more for home insurance

"Some insurers have said they will have to put up their premiums, others have said they won't. It depends on many factors," an ABI representative told the Thrifty Scot.

"It depends on whether or not the property has a history of flooding, " he explained.

"If the company have faced more flood related claims than they will have budgeted for, that may have to be reflected in the future costs of flood insurance."

The ABI made some recommendations for those that flood more frequently, such as replacing gypsum plaster with more water-resistant material, replacing chipboard kitchen or bathroom units with plastic or steel equivalents and moving electrics and meters higher up, above the likely height of flooding.

The ABI said that the costs of the floods to insurers is nearing £3 billion.

20/09/2007 15:39:03