How underwriters calculate flood risk

More than five million households and businesses in the UK, or roughly one in six, are at risk of flooding. Flood premiums account for a significant proportion of the average property premium, meaning that risk calculations can have an important bearing on insurance costs.

Assessing flood risk is an ever-changing calculation for underwriters, as new data becomes available, climate change continues and the built environment evolves.

This article looks at the various assessments underwriters make when calculating flood risk.

Topics covered:
• Assessing the likelihood of flood claims.
• How calculations change.
• How customers can reduce the chance of flood claims.