The Association of British Insurers (ABI) believes government proposals to boost the country’s housing stock significantly are inherently flawed. Where southern England is intersected by major rivers, the surrounding land is prone to flooding. However, because this is where demand for new housing is highest, current plans envisage major developments in precisely these areas.
The ABI believes that up to one third of the planned three million new homes to be built will be constructed on flood plains Consequently the ABI has suggested that its members may have to remove flood cover as a standard component of their policies, should these plans see the light of day. The position of the ABI has drawn criticism from Ian Wright, the Housing Minister, who maintains that current planning regulations are sufficiently stringent to guard against the risk of newly built houses rapidly becoming uninhabitable through flooding.
Wrights believes that because all local authorities have to consult with the Environment Agency before giving the seal of approval to new developments,
home insurance providers have nothing to worry about.
The whole question of flooding and
house insurance has registered more strongly on the national radar in recent times because of recent disastrous flooding, not to mention all the hullabaloo about global warming. News images of towns in Gloucestershire completely cut off by flood water linger a long time in peoples’ memories.
All told, the 2007 floods cost three billion pounds. In view of this incredible sum it is inevitable that this issue will continue to figure prominently on the future policy agenda of
home insurance providers. For the customer in an area that may be affected by flooding, this emphasises the importance of selecting the appropriate cover. The internet is an excellent resource in this regard and it is well worth undertaking a little research to identify the best product.
11.4.2008
