Friend of the Flood Donation

Many of us will be sat back counting our blessings and thinking that we have been lucky to avoid flood damage or damage caused by high wind speeds.  However, according to Newton and his third law of motion - there must for every action be a reaction.

I expect that the reaction for many of us will be the predictable increase in insurance premiums on our homes and boats. The price hike I expect will follow the financial fallout from the hurricane winds and the heavy floods experienced in recent weeks. Even if you haven't been directly affected by the floods the chances are that you won't escape their impact entirely.

Will the promise of assistance with insurance premiums from the government for flood victims be enough. After all, business premises are not eligible and the scheme only applies to homes built before 2009. What store can be placed upon Cameron's hollow sounding claim of a bottomless pit of available money. Will this do anything to reduce the costs?

The spiralling cost of the damage according to TV news has already passed £500 million for this year. However, this does not take into account the more recent claims from the ultra expensive homes in the Thames Valley area as well as the claims building up from the Somerset Levels and other parts of the UK. The flooding in 2007 created a 22% increase in the average quote price. Is this latest round of floods and hurricane winds likely to push up everyone’s premiums in the coming months?

Hang on to your 'friend of the flood' donation, as I think we are in for another significant price hike from another direction!