If you’re moving to a low-lying area, flood insurance is something you must consider when purchasing your next home. Water can cause substantial damage to homes and property so make sure you’re adequately covered should the worst happen.
UK Government cuts to funding for flood defence schemes across England and Wales could lead to increased destruction of homes and businesses, the country’s economy, and to coastal erosion.
The environment secretary, Caroline Spelman, has acknowledged that the flood risks are rising because of climate change but imposed an annual cut of over 20 per cent on flood defence spending. One in six properties in the UK are at risk of flooding, according to the Environment Agency.
The changes could leave more than 50,000 households unprotected by flood defences. The Association of British Insurers (ABI) issued a press release in November 2010 showing that the cost of flood damage since 2000 has leapt by 200 per cent. Insurers who were heavily hit by claims from recent devastating floods will “inevitably” seek to increase premiums or refuse cover altogether, industry experts have said.
Owners of properties next to the Thames will be most at risk, but premiums across London could rise by as much as 10 per cent. The insurance industry has pledged to guarantee cover even to those living in flood-prone areas, under the Statement of Principles on Flood Insurance, but this runs out in 2013. Malcolm Tarling, of the Association of British Insurers has been quoted as saying “The environment Agency has said flood spend needs to double each year just to keep pace with current flooding.”
Read the rest of this post on the Pickfords Moving Advice Centre.