The cost of living is rising.  Even if it isn’t – it feels like it is.

With relatively less in our pockets for the next ‘rainy day’ when a dip into savings is required seems daunting for most. 

None more so than the families who have been plighted by flood damage across the UK this past week.  The flooding has caused extensive damage, created accident blackspots and caused injury and tragically a number of deaths.

The flooding has also lead to a huge upsurge in compensation claims against home and other insurance policies.  The type of rainy day insurance funds that those in high-risk flood areas just simply couldn’t live without.

However, in the wake of the most recent flood’s insurers have warned that those who have flood insurance compensation policies in high-risk areas may be unable to re-new these policies due to the large draw on such compensation reserve funds due to the flooding in recent years.

Indeed, unless a government backed overdraft for insurance companies who insure against flood damage can be agreed many home-owners will find their properties uninsurable and by essence they and their homes will be one flood away from financial ruin.

The insurance industry and the Government remain in talks over a scheme to prevent this from happening.