29-06-2007
Insurance premiums to rise in flood-prone areas
Premiums of businesses and individuals living in flood-prone areas are likely to rise, it has emerged.
According to Reuters, business insurance costs are likely to rise following the recent episodes of flooding across parts of northern England and the Midlands.
"Insurers that are particularly hard hit by claims may have little choice but to increase premiums over the coming year," said Debra Williams, managing director Confused.com, a search engine for products such as home and car insurance.
"This is likely to affect people living in flood prone areas and most particularly those that make flood-related claims in the form of increased compulsory excess levels," she added.
Indeed, according to the Association of British Insurers, approximately 5,000 businesses have been affected by the floods.
The total number of claims is expected to reach £1 billion.
In related news, the Prince of Wales is to visit a number of flood-hit locations across South Yorkshire over the course of the weekend.
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