Insurers in flood insurance warning

Insurers have warned that many new housing developments are taking place in areas where there is a high flood risk.

The Association of British Insurers (ABI) has said that the industry may be unable to provide home insurance in many cases if the situation is not resolved.

Justin Jacobs, the ABI assistant director of property, noted that 13 developments had been started in the last year despite warnings from the Environment Agency that they were happening in areas of high risk.

He stated: "Insurers want to continue to provide flood cover, but poor planning decisions will lead to more homes becoming unsaleable, uninsurable and uninhabitable."

Those looking to get on the housing ladder may wish to use the self build option on land safe from flooding rather than risk buying a home in an area which may be uninsurable.

In another development, the Department for the environment, Food and Rural Affairs and the ABI director general Stephen Haddrill jointly announced a review of housing flood protection measures with a view to improving the insurance situation.


© Adfero Ltd