Flood risk homes may become uninsurable
18th February 2020
New reports suggest that homes at risk of flooding could become uninsurable, unless the Government can provide reassurances that they will not approve applications for new homes in high-risk flood areas.
The ‘Statement of Principles’ is an agreement between Government and insurers, within which insurers agree to insure existing homes in high risk flood areas that are already insured. The Environment Agency in return must then cut flood risk in those identified areas.
Insurers want reassurance that the Government’s announcement to cut the budget for flood defences by £150 million will not lead to more homes being left at risk of flooding. By 2025 there will be a 750,000 shortfall in homes and the government have identified flood plains as a potential area for new development.
Many flood victims have seen the cost of their home insurance rise significantly, and unless a new agreement is reached by June 2013, some homeowners may find they are unable to obtain insurance at all.