| oyal Institution of Chartered Surveyors warns that if | | | | “reasonable” means. As a result |
| you can't get insurance for your house, you're in big | | | | premium increases of 60% have been common with |
| trouble. Mortgage lenders won't lend on houses that | | | | up 400% increases in bad areas. In a tiny number of |
| are uninsurable and as a result its value could fall by up | | | | cases, cover has been withdrawn altogether, mostly in |
| to 80%. | | | | country areas where DEFRA considers the cost of |
| It's a high flood risk that's most likely to make your | | | | defending a cluster of a few homes to be |
| house uninsurable. According to a recent survey, 6.5 | | | | uneconomic. |
| million homes are already at risk from flooding of which | | | | Environmentalists warn that unless DEFRA gets it's |
| 1.5 million are in high risk areas. The government has | | | | skates on, the UK 's current bill for flood damage could |
| completed flood defences in many such areas and | | | | rise from £950 million a year, to £3.2 billion. |
| protection for a further 80,000 homes is due this year. | | | | After all, the average insurance claim for household |
| But concerns have also been expressed about a | | | | flood damage is £30,000 – that's even |
| further 120,000 new homes planned for the Thames | | | | higher than fire damage. And localised events like the |
| Gateway which are potentially in a high “at | | | | 2004 flood at Boscastle, Cornwall , can cost the |
| risk” zone. Yet many areas remain vulnerable. | | | | insurers over £15 million. |
| And if global warming continues, by 2030, the 1.5 million | | | | If you are in any doubt whether your home or |
| at risk could mushroom 3.5 million. Back in 2003 the | | | | proposed home, is in a flood risk area, you should visit |
| Association of British Insurers (ABI) agreed the | | | | This is DEFRA's web site where you can check |
| principles which committed UK insurers to offering | | | | whether they think your home is at risk of flooding. |
| home and contents insurance for properties in areas | | | | Their maps were originally designed for planning |
| which are assessed to be at a flooding risk once in | | | | purposes and provide information on a post-code |
| seventy five years or more. The rider was that the | | | | basis. |
| flood defences had to be already in place or would be | | | | Whilst many insurers use the DEFRA information, |
| completed by the end of 2007. | | | | others like More Than, have their own flood maps. |
| The Department for Environment, Food and Rural | | | | These assess homes individually rather than post code |
| Affairs (DEFRA) has the responsibility of developing | | | | areas. This means that if your existing insurer |
| and maintaining these flood defences but within the | | | | increases your premium for flood risk and uses the |
| insurance industry there's widespread concern that | | | | DEFRA information, you may still be able to get a |
| insufficient progress is being made. As a result the | | | | cheaper rate from an insurer using it's own flood data |
| insurers have has warned the government that there | | | | if its data identifies that your property is beyond the |
| could be widespread withdrawal of insurance cover if | | | | “at risk” zone. |
| progress is stepped up. | | | | The ABI has recently added to the pressure on |
| In the mean time, those in areas threatened by flood | | | | DEFRA to accelerate the building and upgrading of |
| water could find their insurance premiums soaring. | | | | flood defences. It has warned that unless the |
| Whilst the insurance industry agreed to provide | | | | government increases its spending on flood defences, |
| insurance cover, their commitment was simply to | | | | the insurance industry may not continue their |
| maintain premiums at “reasonable” | | | | commitment to the 2003 principles. |
| levels. But there was no definition of what | | | | That would be bad news for many homeowners. |