Mapping the risk

By HELEN LOVELESS, MAIL ON SUNDAY ENTERPRISE EDITOR
Updated:

 

More than 600,000 people living in flood risk areas could qualify for cover, following the launch of new flood-mapping technology.

The newly released digital map of the UK, developed by insurer Norwich Union over the last two years, is able to pinpoint the flood risks faced by homeowners on a house-by-house basis.

Typically insurers rely on postcodes, covering around 10-15 properties, to calculate risk. This means someone living on a hill, say, but in a high-risk area, could end up paying premiums disproportionate to the actual risk, because of their postcode.

The new flood map will highlight the level of risk faced by households, including how often, if at all, a property is likely to flood and how severe the flooding is likely to be.

As a result thousands of homeowners who previously struggled to find cover are now expected to qualify, say Norwich Union, while many households could see insurance premiums fall. Around 2m properties and about 130,000 businesses are in high-risk flood areas.

Laurence Loughnane, head of underwriting at Norwich Union, says: 'Because of the level of the detail provided by the map, people who previously thought their property was uninsurable could now obtain cover.

'The ability to pinpoint whether an individual house is on a hill or a raised ground, and how floodwaters will flow, is invaluable in the fight against flood damage. It will help to convey to customers just how severe the flooding to their property will be and how often a flood can be expected.'

However, the accuracy of the new flood-map technology also means thousands of households could see premiums rise depending on the risk of flooding faced.

Norwich Union admitted this could be the case for a 'small number of households', but said any increase in the cost of cover for existing customers would be phased in over the next two years. It will start to introduce changes to existing customers' premiums when policies are renewed.

The flood map technology cost around £5m to develop. It was launched today in parts of Shropshire and Norfolk, both areas that have experienced severe flooding in the past. It will be rolled out through the UK by the end of the year.

New customers can call 0800 092 9561 for more information.

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