200,000 flood risk homeowners face insurance problems

Aaron Strutt Image

The owners of up to 200,000 flood-risk homes could face difficulties getting insurance, the Association of British Insurers (ABI) has warned.

A deal between the insurance industry and the Government, for insurers to provide cover to at-risk properties in exchange for investment in flood defences is due to expire in June 2013.

According to the ABI, Boston, Skegness and the Vale of Clwyd have nearly 15,000 homes with a high risk of flooding.

Director General Otto Thoresen is quoted as saying: “We are frustrated with the progress of our talks with the Government on the issue; we want it to look urgently at a mode that would allow flood cover to remain widely available and competitively priced.”

Securing a mortgage in an area at risk of flooding is a reasonably simple process. The mortgage lender must be happy with the type of insurance the property has and they some times look at the level of excess. They will also pay particular attention to the valuation report.

February 3, 2012
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