Rise in house building may increase the risks of flood damage for some households
The demand for housing is growing rapidly in London and this could lead to a surge in flood risks throughout the city. This could place the United Kingdom’s flood insurance program, called Flood Re, under a great deal of pressure, according to researchers from the University of Oxford. Researchers believe that the number of households eligible for Flood Re coverage will grow as much as 75% in the coming years.
Flood Re program will launch in April
Currently, only properties that were built before 2009 are actually eligible for flood insurance coverage through Flood Re. These properties could see greater risks in the future, however, as new construction increases the likelihood of flooding due to surface runoff. The Flood Re program is set to launch in April this year and represents the government’s 25-year plan to ensure that homeowners are protected with adequate flood insurance coverage. Researchers from the University of Oxford are concerned, however, that the program will not actually lead to a reduction in the costs associated with flood disasters.
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Researchers encourage changes to the Flood Re program to protect consumers
Researchers are urging government officials to make changes to the Flood Re program before it launches. They advise that there should be incentives for the development of urban drainage systems and flood protection measures for homeowners. Such measures could have an impact on the cost of flood insurance and make Flood Re more capable of providing the services that homeowners need. Given the increasing frequency of flood disasters, improving the Flood Re program may be a major priority for the United Kingdom.
Flood insurance program expected to face significant challenges
Flood insurance coverage is a costly matter in the United Kingdom. Many private insurers have been wary of providing such coverage due to the risks that are associated with doing so. As such, the government has developed the Flood Re program, which is similar to the National Flood Insurance Program in the United States. The program is expected to ensure that homeowners have the flood protection they need, but it will face major risks as a result of providing coverage.