Home Insurance - ABI recommends government should ease flood warnings - 05/03/2008

Warnings have been given by ABI that planning regulations need tightening up by the government to make flooding insurance more widely available across the country.

One million homes will be built on flood plains over the next decade according to the ABI, this is one third of the government’s three million target.

Despite the concerns aired by the Environment Agency, 13 major developments have been given the go ahead in the previous year. Many cheap home insurance policies do not cover possible flood damage and during the current anxiety about freak weather in the UK many homes will be left inhabitable because of a lack of cover against flooding.

Insurers are loathed to cover homes on flood plains against flooding after the events of last summer, and if they will the premiums are sky high.

The ABI is recommending that when a flood warning for an area is over-ruled the government should be obliged to publicly announce why the decision is taken.
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