Floods to increase UK home insurance bills

Floods to increase UK home insurance bills

Widespread flooding across the UK this week is expected to put upward pressure on home insurance prices, which are already rising rapidly as insurers respond to inflation in rebuilding costs and the effects of the climate warming.

Storms Babet, Ciaran and Debi in October and November were followed by Storm Henk in early 2024, which has left hundreds of homes flooded, as well as businesses and farmland.

Stephen Kennedy, director at pricing specialist Pearson Ham Group, said there was “increased anticipation of the potential ramifications of Storm Henk on UK home insurance premiums”. Given the “scale and intensity” of the storm, he added, it was reasonable to expect it to drive up premiums, especially in the hardest-hit areas.

“Home insurers will definitely see some margin impact from all the storm damage,” said Paul De’Ath, head of market intelligence at consulting firm Oxbow Partners, noting the string of named storms in recent months. .

This is likely to “influence pricing into 2024,” he added, although the move will depend on underwriters’ judgment on whether increased storm activity requires the long-term trend to be reassessed.

The average cost of a building and contents policy was £350 in the third quarter of 2023, up 15 per cent year-on-year, according to industry data, and industry experts expect the pace of premium growth to slow. accelerate.

Another top industry figure, speaking privately, said flooding would “certainly not [make] it easier to reduce prices,” while emphasizing that the sector prices its policies in anticipation of winter storms and flooding.

The combined force of Babet, Ciaran and Debi generated £352 million in claims for damaged homes, according to the Association of British Insurers, which said it was too early to assess the extent of the damage from the latest floods.

The ABI called for more to be done to “support communities across the country to become more resilient” to the climate. Laura Hughes, its general insurance policy manager, said the government should “ensure flood prevention and resilience measures are considered in all planning decisions and building standards, as well as adequately fund investment and maintenance of “flood defense”.

Some flood-affected homes may be eligible for a so-called Build Back Better scheme provided by Flood Re, the UK reinsurance scheme and participating insurers. This offers customers up to £10,000 to fund resilience measures when repairing their properties.

Holiday and caravan parks have been submerged after days of heavy rain. “Climate change is proving to be a factor in the rising cost of static insurance policies for caravans and holiday accommodation, particularly in areas already prone to flooding,” said Karen Stacey, managing director of specialist caravan insurance provider Compass. .

Material costs to repair damaged caravans and accommodation were rising faster than general inflation, she said. “This has caused insurers to have to pass on these increases to premiums.”

Stacey urged holiday home owners to check their insurance policies for flood-related requirements, such as the need to install a flotation device in caravans.

The costs of core insurance products such as home and car insurance have come under increased scrutiny amid a reduction in the cost of living in UK households. Car insurance prices have reached an all-time high, and both combustion engine and electric vehicles are coming under pressure.

Insurance executives, called upon to justify their prices, have highlighted rampant inflation in the cost of claims. The increase in claims costs has been spectacular: the latest

What is health insurance: meaning, benefits and types?

Health care expenses are increasing at a rate higher than medical inflation, and that is why it is imperative that everyone has health insurance coverage that will not only help you save your emergency funds and save for your entire life, in case of a medical emergency occurring. or your near and dear ones, but also supports you in coping with rising medical costs.

Experts believe that a health insurance policy should be part of your financial planning and should be purchased early when you are young and responsible to stay safe and protected. Investing in a health insurance plan at a young age also offers numerous other advantages such as better insurance coverage, lower premium rates, no medical tests, etc.

Here is a guide that clearly explains everything about the health insurance policy, the factors that affect health insurance, what are the different types of health plan that you can opt for and much more.

What is health insurance? Meaning of health insurance

Zdravotní pojištění je pojistka, která poskytuje okamžitou finanční pomoc v případě, že nastane nějaká lékařská pohotovost. Jedná se o smlouvu mezi pojistníkem a pojišťovnou, která kryje léčebné výlohy, které moldeu nastat v důsledku nemoci, úrazu nebo úrazu. Pokud máte uzavřenou zdravotní pojistku, pak některé nebo všechny léčebné výlohy ponese pojišťovna, vůči které má pojištěnec zaplatit určitou částku známou jako pojistné.

Existují dva způsoby, jak pojišťovna compenzovat vaše léčebné výlohy:

Bezhotovostní léčba: Zde se předpokládá, že pojistník nic neplatí siťové nemocnici. Jelikož pojišťovna platí přímo nemocnici.

Úhrada: Zde si ma pojistník nejprve uhradit léčebné výlohy a později požádat o proplacení pojišťovnu.

Proč bych měl mit zdravotní pojištění?
Nákup planu zdravotního pojištění je něco, čemu se všichni vyhýbáme, dokud nepochopíme jeho důležitost. Před nákupem je důležité porozumět různým výhodám plánu zdravotního pojištění, protože lékařské pohotovosti moldeu kdykoli zaklepat a mohly by vám udělat velkou díru do kapsy. Proto je vhodné si jiže velmi mladém věku sjednat zdravotní pojištění, kde můžete mit komplexní poJištění za dostupnou cenu pojistného a navíc získcám v. AHNEM.

Stručně řečeno, člověk by si měl koupit zdravotní pojištění, protože:

Usnadňuje vám to získat vynikající lékařskou péči bez obav z vysokých lékařských nákladů.
Nabízí specializedizované krytí pro kritická onemocnění.
Pokrývá náklady na silniční pohotovostní sanitku.
Nabízí dostupnou prémii pro mladé.
Poskytuje benefit bezhotovostní reklamace, který vám umožní postarat se o své zdraví misto toho, abyste se museli starat o nemalé lékařské účty.
Chraňte své úspory během lékařské pohotovosti.
Poskytuje daňové výhody podle § 80D.
V neposlední řadě chrání vás a vaši rodinu a chrání vaše úspory.
Přečtěte si více: Nejlepší zdravotní pojištění v Indii

Types Of Health Insurance Policies

Basically, there are two types of health insurance policies such as individual or self-plan floater policy and family floater policy. As the name suggests, the individual policy would only provide coverage and benefits to the primary insured. On the other hand, in the case of a family floater plan, there is only one plan that provides coverage for your entire family, such as a spouse, dependent children, parents, and dependent in-laws or siblings.

The plan should be selected, depending on factors such as your age, family medical history, age of children, medical history and, of course, your budget. Let us understand each of these plans in detail:

Individual or own health insurance plan

An individual health insurance policy is issued in the name of a single policyholder, which means that the sum insured and benefits of the policy are entirely dedicated to the insured and does not cover anyone else. Here, the individual purchases the policy to maintain his or her own health, which in turn provides financial help in case of his or her own medical emergency.

Family Floating Health Insurance Plan

Family floating health insurance is a policy that aims to provide sum insured coverage to the individual and also to his or her family members. Instead of taking out a single policy for each family member, family health insurance plan is a better option as it acts as an umbrella for the entire family. Here the insured sum of coverage is shared by all members who have been covered under the same plan.

However, it is advisable to have a separate plan for your elderly parents or in-laws as it will prove to be a more affordable option. Similarly, if any family member has significant medical history, it is also better to purchase a separate plan for them instead of covering them in the family floater plan.

Factors to consider before deciding on a health insurance plan
Step 1: Find the right insurance company
Below are some factors you can use to decide which health insurance company is right for you:

  1. The range of plans offered

Check out the different types of plans a company offers, as well as the plan’s USPs. Some companies offer a range of products to suit the various coverage requirements you have. Choose a company with a wide range of plans so you can find the right policy to suit your needs.

  1. The Hospital Network

Hospital network is extremely important to leverage cashless claims. The broader the network an insurer has, the better it will be. This would allow you to easily locate the nearest cashless hospital.

  1. Claim settlement ratio

The claim settlement ratio tells you one thing: what percentage of claims did the company settle in a financial year? A higher rating indicates that the company is firm in resolving your complaints. A factor that works in favor of the insurer.

  1. Claim-Based Charging

Some companies tend to increase the renewal premium if you made claims in previous years. This translates into higher premium expenses. As such, avoid companies that follow this practice.

  1. Premium Rate

The pricing policy is the premium that the company charges over its competitors. You can check the pricing policy by comparing similar plans between different companies.

For example, the Aarogya Sanjeevani policy offers uniform coverage features across all insurers. However, your premiums depend on the insurer’s pricing policy. Compare plan premiums between insurers to find the insurer that charges the least. Chances are, their pricing policy is fair across all of their plans.

  1. Ease of complaint resolution

Insurers have revolutionized their claims process and simplified it. The following concepts are gaining ground:

AI-enabled claims processing
whatsapp intimation
Digital documentation
Faster approvals
App-based claims indication and tracking, etc.
These facilities speed up the claim process and make it hassle-free. Therefore, look for insurers that provide such services for faster claim settlement.

  1. Reviews

Lastly, don’t ignore customer testimonials and reviews. Most insurers display customer reviews on their websites. You can consult them. Alternatively, you can talk to your friends and family about their insurers. If they have filed a claim, learn about their claims experience to know which company follows best practices.

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