Home insurance at risk as flood defences cut

Vital flood defences are likely to be cut following the recent Comprehensive Spending Review. As a result, insurers are determined to end an agreement under which they will provide flood coverage as standard in home insurance policies in return for boosted government investment to protect at-risk areas against flooding.

At present there is an agreement between insurers and government to ensure properties receive adequate flood insurance. However this is due to end in 2013 and the Association of British Insurers (ABI), which represents the insurance industry, has stated that no follow-on deal has been agreed.

According to a recent article in the Financial Times, the insurance industry hasn’t kept its side of the bargain, with evidence suggesting that people suffering flood losses often have to pay higher premiums. It cites a survey from the National Flood Forum which found that flood victims often face rises in excess costs of around £5000.

If disaster strikes and your home has been flooded, then Morgan Clark can help ensure you receive your full entitlement under the terms of your insurance policy. Visit our page on home flood insurance and read about how we have helped people whose lives have been devastated by flooding.