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Severe weather ‘should renew focus on flood insurance’

28/09/2023

The recent heavy downpours seen across the UK should prompt the government to take action on a problem facing homeowners and insurers, the AA has said - namely, an agreement on flood insurance that is due to expire in less than a year. At the end of June 2013, 200,000 homes that are at risk of flooding could become uninsurable as the agreement, which states that insurers will continue to cover these properties as long as the government invests in flood defences, comes to an end.

Simon Douglas, director of AA insurance, said the deadline is approaching and there is still “little sign of a replacement” that will guarantee insurance for those at risk of flooding - potentially meaning thousands of families may need to secure a quick home sale and relocate. “These families must be wondering whether they will be able to find affordable insurance from that date and I’m concerned at the apparent lack of progress,” he said.

This month, the Department for Environment, Food and Rural Affairs said that a number of options are under consideration, including an industry-led levy that would help to cover the expense of offering insurance to flood-risk homes. Mr Douglas added: “The Treasury is not likely to be enthusiastic about underwriting such a risk. Who picks the liability up is, I believe, where discussions may have stuck.”

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