Approximately 200,000 U.K. homeowners face fears over a struggle to adequately insure their properties after the flood insurance agreement ends in 2013.
Since 2000, the Provision of Flood Insurance Statement of Principles has been continuing an agreement between the Association of British Insurers (ABI) and the government. It states that homeowners’ insurers must make flood insurance as accessible as possible to residents of the U.K.
This has make homeowners’ insurance available to customers who are living in regions with a high flooding risk. However, this agreement will end as of 2013, and those homeowners may not find it as easy to obtain coverage after that time.
Though the Environment Agency states that it is continuing its efforts with the ABI to ensure that home insurers will continue to make insurance available to homeowners located in areas with a high flood risk, it is not known whether or not the statement will be renewed.
The initial arrangement had been agreed upon under the condition that the government would make notable efforts to better the defenses against flooding within the regions with high-risks of flooding. Unfortunately, the government’s current flood prevention investment will only lead to a higher amount of properties that are at risk of flooding than have been seen in previous years.
In fact The Environment Agency has predicted that by the year 2035, there will be an additional 350,000 properties at a high risk of experiencing flooding. Therefore, many believe that it is highly unlikely that there will be a renewal of the flood insurance agreement.