Home Insurance Cut-Off Threatened Without New Flood-Defences

The floods a few years ago took many of us by surprise not least those that were tragically affected. However, it has lead to an insurance back-lash and now insurance companies are refusing to insure without adequate flood defences in place.

Half a million homes in the UK are still at high risk of flooding, home insurance companies have warned.

Unless flood defences are improved, the Association of British Insurers (ABI) said that 570,000 people face a high risk of substantial damage to their homes.

The estimate is more than twice the figure calculated to be at risk when the government's last round of spending on flood defences was drawn up in 2002.

The ABI added that without increased defences and with new homes continuing to be built on flood plains, growing numbers could become uninsurable in the future.

It claimed that government flood defence spending needs to be boosted by ten per cent to £750 million a year by 2011 in order to secure homes.

"Britain is one of the few countries where flood insurance is widely available from the private market – insurers want this to continue," commented a spokesman for the ABI.

"But the new, higher estimates of homes and businesses at risk means that the government needs to invest more in flood defences. This makes good economic sense for homeowners, businesses and the taxpayer."

The ABI wants to highlight the importance of promoting the value of insurance to households, businesses and Local Authorities and the importance of effective and efficient handling of claims, and the importance of ensuring consistent advice being given to customers and high standards of service.

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