Will Your Home Insurance Be Refused?

The severe flooding experienced by much of the UK this summer has so far cost insurers an estimated £3billion, an unexpected amount that could cause the cost of home insurance to rise for us all.

However, if the government heeds the advice long recommended by the Environment Agency and reiterated in the Association on British Insurer's report on this summers flooding, home insurance for those that live on flood plains could be a thing of the past.

The ABI found that due to current inadequacies of much of the UK's flood defences, almost two thirds of the properties flooded this summer expect to be flooded again in the near future. This is something that isn't an entirely unreasonable supposition as our climate continues to change and weather patterns become less predictable.

On the basis of this finding along with other issues unearthed in their flood report, the ABI have recommended that where possible, no new properties should be built on flood plains so that insurers can still continue to provide realistic and affordable home insurance for all. As a resolution to this issue they recommend giving the Environmental Agency more power to determine the ecological suitability of new housing developments and the level of flood defences needed.

While the threat of flooding is unlikely to affect the insurability of existing properties, as a move to spur the government into action, the head of the Environmental Agency has suggested that new flood plain developments remain uninsured. If this advice is taken into consideration it could see flood plain homes become significantly less desirable, affecting their marketability and eventually the willingness of contractors to build in non-environmental agency approved areas, something that can only be a good thing for the British public and flood prevention.

In the meantime, the Association of British Insurers do state that they will endeavour to continue providing affordable cover for all. However, if you're home is in a 'high risk' area shopping around is going to be all the more important in finding affordable cover that provides a suitable level of protection for your home.