Floods could cost £4bn per year by 2035

by David Masters

Story link: Floods could cost £4bn per year by 2035

Home insurance firms are set to lose £4 billion a year by 2035 on repairing flood water damage unless the industry takes the lead in creating a flood prevention strategy.

Insurance companies should work with the Environment Agency and local authorities on putting flood prevention measures in place and making homes flood proof, Co-operative Financial Services said.

“As insurers we have to look at our own position and we have a responsibility to our customers to speak up when things are progressing too slowly,” said James Hillon, Co-operative head of home insurance.

“Houses are being built with pound signs in developer’s eyes rather than the homeowner’s best interests at heart and local planners don’t understand the areas they are approving building works on,” he added.

“Whilst the government has pledged to increase funding in flood defenses moving forward, it is up to the insurance industry to lead the way.”

Research published by Halifax earlier this year found that average claim for flood damage to a property is £20,000.

One in six homes in the UK is at risk of flooding.