200,000 homes in flood areas face insurance crisis

The Association of British Insurers has warned that homeowners in 92 areas in England and Wales could face huge insurance costs next year.

The Association of British Insurers (ABI) has published a list of areas where homeowners are likely to face difficulties getting home insurance due to flood risks.

At the moment, the Government has an agreement with insurers to provide cover for high-risk properties. However, this ends in June next year and no new agreement has yet been struck.

As many as 200,000 homes could be at risk across 92 areas in England and Wales, says the ABI, which has analysed Environment Agency flood data.

Here are the areas which have “significant flood risk”, according to the ABI:

Area	Number of homes facing significant flood risk
Boston and Skegness	7,550
Vale of Clwyd	7,339
Folkestone and Hythe	7,196
Windsor	7,125
Runnymede and Weybridge	6,541
Clwyd West	6,160
Aberconwy	5,500
South Nottingham	5,043
Great Yarmouth	4,965
Sittingbourne and Sheppey	4,295
Central Leeds	4,209
Canterbury	4,199

Significant flood risk is defined as a more than 1-in-75 chance of flood in any given year.

The ABI is calling for a long-term solution beyond the current Flood Insurance Statement of Principles. It says it is unwilling to renew it as people in low-risk areas pay more to subsidise those in high-risk areas, high-risk customers are tied to their existing insurer and insurers have ended up with a disproportionate amount of high-risk properties.

It is calling for a “risk pooling” approach, with the Government sharing some of the risk.

In November, Hull North MP Diana Johnson said some homeowners in flood-risk areas had seen their home insurance premiums increase by 500%.

The cross-party Public Accounts Committee has questioned whether there is enough money to pay for more flood defences and who pays for them.

More: Compare home insurance policies | How to protect your home against flooding