The AA has warned that thousands of homes in the UK could be uninsurable if flood defences are not completed
Thursday, 02 February 2012 10:48
The AA has warned that the government needs to take decisive action to ensure all homes are able to get protection and insurance from flooding when the present agreement between the government and the insurance industry ends in July 2013.
The current agreement is supposed to buy time so that areas in the UK prone to flooding would have flood defences set up or improved to reduce the risk and therefore allow these homes to become insurable.
However the AA believes that cuts mean the government is behind on the construction of flood defences.
Simon Douglas, director of broker AA Insurance, says: ?Flood protection is a national priority, yet many people in flood-prone areas may find their homes difficult to insure from later this year.
?People want the government to take decisive action now, to ensure that their homes are protected. But that?s not happening with the Environment Agency?s budget cut by 10%.?
Last month the AA released its benchmark British Insurance Premium Index which revealed that home buildings insurance premiums increased by 9.5 per cent in 2011 and contents insurance premiums went up by 11.2 per cent.
The AA says that with more frequent examples of extreme weather in the UK, including flooding, insurance companies are becoming increasingly concerned about the claims that arise from such incidents and are calling on the government to provide the national defences to areas that are prone to flooding.
Mr Douglas says that the insurance industry is becoming concerned at growing numbers of claims resulting from increasingly frequent extreme weather, including flooding.
Mr Douglas said: ?Some insurers are telling us that flood-prone homeowners might not be able to renew their cover later this year, because their new policy will extend beyond 1 July 2013: with all the implications for property value and mortgage availability that this implies.
?That does not augur well for the 5.2 million families estimated to be at risk from flooding.?
Mr Douglas adds: ?The Public Accounts Committee has come up with a range of sensible recommendations which must be acted upon now.
?Homeowners expect the government to take a lead on this issue: they need some reassurance that they won?t be left unprotected.?
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Source: http://insurancehotnews.com/2012/02/02/aa-warns-government-on-flood-defences-for-uninsurable-homes/
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