The floods are not the only factor in their decision, Norwich Union says. Just the final straw that forced them to raise prices by nearly three times the rate of inflation. Claims against the insurance company will reach an estimated £340m, according to a Norwich Union spokesmen.
In a statement released by NU, the insurance company also cited a “background of stable premiums for the last six to seven years” and the cost of additional staffing to deal with the flooding crisis as factors in the decision to raise UK home insurance premiums.Norwich Union is not alone. The Association of British Insurers says that home insurance claims from this summer’s floods are expected to top £2bn, the highest flood bill in over twenty years.
Lloyds TSB, Direct Line and Churchill home insurance are contemplating similar premium rises, though they have not yet announced the amount their premiums are expected to rise.
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