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06-12-2010

Homes may be uninsurable against floods

The Local Government Association (LGA) has warned that recent cuts to flood prevention work may leave millions of householders unable to insure their homes against flooding. With one in six homes in the UK estimated to be at risk, this could be a serious problem.

An agreement between the Government and the insurance industry currently allows homes and businesses in flood risk areas to purchase cover provided the Government is doing its part to mitigate the risks. The recent cuts put this investment in flood defences at risk, raising the prospect of the insurance industry refusing to offer affordable cover.

According to the LGA, householders, businesses, and local and central government would be left to pick up the bill for repairing the damage caused by any future floods.

More on this story can be found by visiting here.

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