Saturday, January 05, 2008

Calculating Premiums For Flood Zone Insurance

By John Paige

Even though the insurance companies offer several quotes and rates for the cost of premiums related to UK flood zone insurance, the factors affecting the cost varies. The prime factor is the level of cover that you require. The size of the premiums varies so much depending on the covering cost. So when you choose a scheme, you will have to specify the cover that you require. This also means that if you wish to cover more areas for the insurance policy, then your cost of premium will also proportionally high.

It is mandatory to fill a quotation form with your personal details whenever you buy an insurance policy. You should fill in accurate details and many of the answers that you give will decide the calculation of your premiums. This particular thing is depended on the type of insurance cover that you are enforcing for. By any chance if you avoid this questionnaire, you might face trouble later when your claims for the insurance policy are stopped or when the insurance policy is nullified.

To calculate your flood zone insurance premium, insurance providers will want to know the type of property you have. If your home is not made out of bricks, concrete or stone and the roof out of slate, tile or concrete, then your premiums will rise. Insurance providers will also check the condition of the plumbing, heating and electrics in your house.

They will want to know when the house was built and the number of people who live there. They will also want to know if the house is yours or rented, how many bedrooms are there, if your house had been a victim of previous flooding, and other concerns.

With all insurance, the location of the home is going to be a major factor. Insurers look to see if your home is located in a common flood zone, or located in a place likely to fall prey to other natural disasters. If this happens to be the case, then with the rising risk to the insurer comes a rising premium cost.

Security in the area is another factor in calculating your premium. The insurance providers will also take the crime rate of your area into consideration. They will want to know about the kind of locks you use, if you have burglar alarms, smoke alarms, and other concerns. The distance of your house to the emergency services like fire stations and police stations will also decrease/increase the cost of your flood insurance premiums.

Moreover an insurance agent will ask you to fill personal details like occupation and the income earned. This is to assess the capability of the person to repay the premium in the future. The age of the person is also a factor; if your age is above 50 years then you are liable to get some discounts also.

There are measures you can take to lower your flood zone insurance costs. Whatever conditions your house is in, tell your insurance provider if there are ways you can lower the insurance risk because your flood insurance premium would go lower, too.

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