| It is thought that those who live in areas that suffer | | | | raised when the Environment Agency's budget for |
| from high winds or flooding, there is a good chance | | | | maintaining flood defences were cut by nearly |
| that they will be paying more for their home insurance | | | | £15million this year. The insurance industry is |
| in 2008. Due to re-occurring floods, in some parts of | | | | therefore threatening to withdraw cover from the two |
| the UK, it has resulted in claims running into the billions; | | | | million homes in high-risk areas, if spending on |
| therefore many insurers have already announced that | | | | preventative measures is not increased. |
| the premiums will begin to increase as a consequence. | | | | The current budget for flood defence is £540 |
| For the moment, those premiums are set to rise all | | | | million per year, but this should be increased to nearly |
| over Britain, but they could change. | | | | £750million the Association of British Insurers |
| The insurance industry have released a current report, | | | | (ABI) believes. A spokesperson from ABI claimed: "If |
| which claims that 61% believe that price competition will | | | | we get a situation where vastly more properties are |
| force the industry to end its current practice of | | | | vulnerable to flooding, at the very least they'll become |
| subsidising those in flood prone areas, by charging | | | | more expensive to insure, at worst cover for flood risk |
| higher premiums to everyone. That means a reduction | | | | as a standard part of household policies will come |
| in premiums for those who live in areas with average | | | | under pressure." |
| risk may not be likely. | | | | The cover for damage to homes and buildings due to |
| The insurance industry has criticised the Government | | | | flooding is a standard part of home contents policies. |
| stating that they have let millions of homeowners and | | | | Claims following the flood are very expensive, reaching |
| businesses down, as they failed to commit enough | | | | £40,000 on average to fix. |
| resources to flood improvements and defences. | | | | There are already 570,000 British homes at risk from |
| This has increased flood worries as homeowners living | | | | flooding. With sea levels expected to rise along the |
| in areas with high risk flooding may be unable to insure | | | | East Coast, twice as many houses from Ramsgate to |
| their homes in the future if the Government all together | | | | Hull could be in severe danger in the future. |
| stops investing in flood defences. Concerns were | | | | |