In Hertfordshire, Hereford and Hampshire, hurricanes hardly ever happen, or so recounted Eliza Doolittle. What a difference a century makes. Even the best-drained land has struggled to cope with the torrential downpours of late.
Insurers are under scrutiny from the government, keen to ensure swathes of the country do not become uninsurable. Insurers deny that will happen. But there will have to be some harsher premiums to reflect the damage flooding can do and any increase in its potential frequency.
Many of these riverside dwellers have had it too good for too long. Insurers have been swift to nudge up premiums and increase excesses for subsidence, mindful of the areas where the risk is greatest. And they have been similarly minded to bump up rates where the risk of burglary (theft, for cars) is greatest, rightly penalising those in the inner cities.
Those in the country, meanwhile, have tended to have cheaper home and car insurance to reflect the reduced risk. After all, why should someone living in a safe country cottage with a garaged car subsidise some inner-city dweller whose house is burgled every few of years and whose car is easily taken and joyridden away?
But the tables could be turning. How long before those living on hills begin to question why they should subsidise the flood plain dwellers?
Insurers will have to be careful. They are right to suggest there will be no knee-jerk reaction or imediate price hikes. General pressure from the competitive market will work against rises anyway. But premiums must go up.
With proper education about the reasons, with justification from claims experience and research – and not just from doom-mongering predictions – insurers will be able to not only increase premiums but win acceptance for the rises.
Everyone has seen the waters rise. It is time for the premiums to follow.
