Home Insurance: Flood-risk Properties Could be 'uninsurable'

More than half a million homes in England could beof people, followed by tougher planning controls for
ineligible for home insurance unless action is taken tonew homes. Three-quarters of people believed the
protect them against flooding, the insurance industrygovernment's target of 3m new homes by 2020
warned today. The Association of British Insurers (ABI)should be reduced if it would lead to more homes
warned that its members could stop offering floodbeing at risk of flooding.
protection as standard on all home insurance policies, inNick Starling, the ABI's director of general insurance
a report published a year after thousands of homes inand health, said: "These findings reinforce our call for a
Hull were hit by flooding.long-term flood management strategy.
The report stated insurers could not commit to"In particular, we must tackle the problem of surface
covering all the homes identified by the Environmentwater drainage. Planning for the future is essential if
Agency as being at significant risk of flooding, overwe are to minimise a repeat of last year's terrible
517,000 of them, unless the government announcedfloods, and to ensure that flood insurance protection
plans for them to be adequately defended.remains widely available."
The ABI added that without government action andA spokesman for the government's communities and
stricter enforcement of planning controls to preventlocal government department said: "If councils properly
new homes being built on flood plains, some propertiesuse the tough new planning rules we have put in place
could become "uninsurable, unsaleable andto protect new homes against flood risk, which
uninhabitable". It was also stated that last year's floodsincludes consulting the Environment Agency, it will
in Hull and Gloucester led to 180,000 claims forensure that all homes are safe from flooding and
flood-damaged homes, businesses and vehicles, andsustainable for the future - effective surface water
that its members had dealt with four years' worth ofdrainage and flood defences must also be part of
claims in two months.new housing infrastructure."
More than 17,000 policyholders were put up inThe ABI (Association of British Insurers) represents the
temporary accommodation and a total of £3bn wascollective interests of the UK’s insurance industry.
paid out in claims.The Association speaks out on issues of common
Statistics regarding some of those living in the flood-hitinterest; helps to inform and participate in debates on
areas found eight out of 10 thought the danger ofpublic policy issues; and also acts as an advocate for
flooding was increasing, while three-quarters did nothigh standards of customer service in the insurance
think enough was being done to tackle the problem.industry.
Improving drainage was seen as a top priority for 98%