Action needed on floods say insurers

19 June 2008

Insurers warn of 1/2m homes which may be uninsurable against floods

The insurance industry has warned that over half a million homes in England could soon be on insurers’ black lists for flood protection.

According to the Association of British Insurers (ABI), there are 517,000 houses which are at “significant risk of flooding”.

It also reported that last year’s floods in the UK, which were the worst on record, cost insurers £3bn in claims for the damage caused, with 180,000 claims in two months for damage caused to houses, businesses and cars.

However, it added that its members will not continue to provide insurance for people in these areas of significant risk unless the government does more to prevent the flooding.

BBC News reports that, in its review of the floods which hit parts of the UK last summer, the ABI said: “For flood cover to remain widely available, government action is needed to identify and better manage the threat of flooding.

“Unless there is an overhaul in how flood risk is managed, insurers will find it increasingly difficult to offer flood cover in parts of the UK.”

Nick Starling, of the ABI, told the BBC: “Last year’s floods were massive, they changed our perception of what is happening with flooding in this country.

“We need to have a sense of urgency about dealing with flooding – we need to get a grip on this issue,” he added.