Insurance warning for flood homes

31/01/12

By Scott Allan

The insurance industry has warned that some 200,000 households which are at risk of flooding could face difficulty in getting adequate policy cover from next year.

Association of British Insurers (ABI) director-general Otto Thoresen said that there is only a year left on a current deal with the Government, with time running short for ongoing talks on a new safety net arrangement.

Mr Thoresen added: "Insurers want to make sure that every home has access to affordable insurance, should the worst happen, and we're concerned that those people most at risk will lose out unless the Government considers a safety net.

"We are frustrated with the progress of our talks with the Government on this issue and want it to look urgently at a model that would allow flood cover to remain widely available and competitively priced."

The ABI warning comes in the wake of a report by MPs which claimed that funding for flood defences in England is being reduced at a time when the Environment Agency predicted they would need to be increased.