Changes to the way insurance premiums are calculated are always of interest to our home, holiday home and landlords building insurance customers – and in recent times how flood risk is calculated has come under the spotlight.

Aviva was recently been under fire from a small number of its customers because of the new way it calculates how at-risk a property is from flooding. According to some reports, the new technology being used by the firm is resulting in insurance increases of up to 30%. The new calculation technique pinpoints flood risk in terms of individual properties, as opposed to applying a calculation to a number of properties in a geographical area.

Some of those facing premium hikes say that the new technology is flawed. Additionally, they say that the firm is making at hard to challenge the premium increases because they demand a costly civil engineer’s report in order to take their issue into account.

A certain Joanna Hopwood, who owns a barn in Warwickshire, has been impacted by the new technology, and faces a 35% increase in her premium. The increases were largely due to a nearby stream, of which Joanna said, ‘It’s a nondescript stream. In fact it’s so nondescript that most of the time it’s dry.’

Experts agree that if a property owner is faced with seemingly unfair premium increases such as this, they should explain the situation to their insurer.