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Daily Insurance Industry News
Saturday 23rd of June 2018
January 28, 2009

Flood prone housing developments uninsurable

by David Masters

Story link: Flood prone housing developments uninsurable

Insurance for new properties built in flood-prone areas will become increasingly difficult to find, the Association of British Insurers (ABI) warned this week.

Developers who build in areas of high flood risk will find it difficult to sell properties because insurance will be prohibitively expensive or unavailable, the ABI said.

Stephen Haddrill, director general of the ABI, said: “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.”

New guidance for planners and developers published yesterday by the ABI outlines the insurance provision available in high risk areas.

Property buyers should be given details of all specific flood prevention measures, including raise floors, flood resilient building materials, and risk assessment, the guidance said.

“We all want new sustainable communities and a thriving housing market but this can only happen if we design, build and locate new properties to withstand climate change,” said Haddrill.

The new guidelines follow the ABI’s announcement last year that over 500,000 small businesses could become uninsurable if UK flood prevention schemes are not improved.

 

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