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Real estate insurance has become more expensive

December 3rd, 2007

After the last flooding in the Great Britain, millions of people will be compelled to pay on the average on 10 % more, than earlier, for the real estate insurance.
The sharp increase in cost of housing insurance was declared by the largest insurance company of Great Britain Norwich Union, which made payments for the sum of 340 million pounds sterling for damages, caused by last flooding.
Norwich Union, where each fifth owner of the real estate in the Great Britain insures the property, will raise price for its services. According to the representative of the company, speech about increase in cost of housing insurance has conducted for a long time; however, flooding became the determinative. Increase of quantity of bathrooms, in the houses, and, hence, increases of risk of flooding are among other factors, which have affected such decision-making.
It is expected, that after Norwich Union other companies will raise their prices.
The flooding, which have fallen the Great Britain and because of which three people were killed, has been named by meteorologists as the worst flooding for all history of the country. Almost all counties have suffered from flooding.
On tentative estimations, the damage from flooding will manage to the insurance companies in 4 billion pounds sterling.

 

 

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