A third of Gordon Brown's planned 3 million new homes may be uninsurable warns Association of British Insurers
One-third of the three million new homes which the government is planning for 2020 could be in “jeopardy” because they will be built on flood plains, according to the Association of British Insurers (ABI).
The ABI said 13 major developments had been given the go-ahead despite flood risk advice from the Environment Agency over the last 12 months. Seven of the sites are considered high-risk flood areas.
Justin Jacobs, assistant director of property at ABI said the government’s housing plans could be under threat unless the flood risk was reduced.
The ABI warned that the homes could be uninsurable unless stricter planning controls are brought in.
Jacobs told the BBC, “Insurers want to continue to provide flood cover, but poor planning decisions will lead to more homes becoming unsaleable, uninsurable and uninhabitable.”
The ABI said last summer’s floods had so far cost insurers £1 billion.