Insurance will be unavailable or too expensive for developers who choose to build in high flood risk areas and selling such properties will become increasingly difficult, warns the Association of British Insurers.

ABI is now urging the building industry to develop a kite mark scheme that would allow buyers and insurers to check if a building was climate-resilient.

The association has also published guidance on insurance aimed at helping developers ensure that their properties are flood-proof and insurable. The guidance, ‘Building a sustainable future’ will ensure that buyers can make an informed choice.

Stephen Haddrill, the ABI’s Director General, said: “These guidelines will help developers and planners to build properties to withstand the impacts of climate change.

“We encourage the building industry to develop a kite mark scheme, so that buyers and insurers can easily see if a building has been designed to be climate-resilient. Avoiding high flood-risk areas, and building better protected buildings will enable flood insurance to remain widely available and competitively priced.”

Under the guidance, insurance providers will have to provide homebuyers with details of specific measures taken to minimise the risk of flooding in new developments.

Buyers will now need to know if the property has raised-floors and flood-resilient building materials. Home insurance providers must also carry out an assessment of the remaining risk and exposure.