The problem of living in a flood plain led to an insurance premium increase that we couldn't cope with any longer
We have lived in a house since 1979 that is next to a river and therefore in a flood plain. It has never been known to flood (the previous owner had been resident since 1945). When we arrived, we insured with General Accident (GA), which was taken over by Aviva.
In 1992, we had a claim for subsidence, and the stabilisation project was completed and certificated by a qualified structural engineer and our claim was settled by GA. We understood at that time that we would be tied to GA for buildings insurance purposes for the following 10 years because of this claim.
However, we have found it impossible to obtain cover from any other company and it appears to be a monopoly situation. The result is that, while our annual premium for buildings and contents insurance was £1,529.98 in June 2011, this year it has risen to £2,696.12. We have had to pay this amount but feel "trapped" and wish to know where we stand for the future and what our options are. CK, Wern, Shropshire
An almost £1,200 year-on-year increase in your insurance premium seems enormous, particularly when you have not claimed for 20 years and your area has not been flooded.
Although you thought the premium might be linked to your previous subsidence claim this is, in fact, irrelevant. Aviva says the reason that there has been such a hike is that the previous premium did not fully represent the flood risk the property presents. It says your property is in the highest risk category for flood, being 15 metres from a river that, if it were to flood, is predicted to do so in the direction of your house.
Insurance companies have been updating their flood-risk models in recent years and have been increasing premiums hugely in some areas due to perceived risk. Many are effectively trying to price high-risk customers off their books. It sounds like you have been a victim of this.
We put you in touch with the National Flood Forum (floodforum.org.uk, 01299 403055), a charity set up to help people in your situation. It offers advice on what people in flood-risk areas can do – for example, in your case possibly obtaining an Environment Agency report on the flood risk in your area to see if this backs Aviva's assertion. It also searches around for lower premiums for flood-risk households. It gave you the number for a broker, Insurance Choice (insurancechoice.co.uk, 0843 22 70 106), which quoted you a premium of £855.90, a saving of £1,840.22 on the Aviva quote. Aviva has refunded you £2,436.40 for the remaining time you would have been covered with it. You say you are delighted.
We welcome letters but cannot answer individually. Email us at consumer.champions@guardian.co.uk or write to Bachelor & Brignall, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number.
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