More than half a million homes in England may soon become uninsurable because of the propensity of certain parts of the country to flood. The Association of British Insurers has estimated that an excess of 510,000 homes in the country are at a significant risk of being flooded, and accordingly is stating a lack of willingness to offer insurance cover for those houses.



Last summer's floods in the UK costs the members of the ABI in the region of £3bn in claims, leaving a serious dent in the profits of almost all the UK's major insurers, as a result it says that it will not continue insuring people in high risking areas unless the government takes steps to defend them against flooding. The ABI declared that unless there was an overhaul in the way flood risk is managed across the country, insurers would find it increasingly difficult to offer flood cover in parts of the UK, and if they did that it could come at an exorbitant price.

The declaration has come in the middle of a week of difficult relations between the ABI and the government. Despite protestations from the ABI, it will now be illegal to have age-caps on health, life and travel insurance.

Insuring against flood damages is essential when it comes to getting house insurance, but increased rainfall and the credit crunch have combined to make it hard for the insurance companies to protect themselves and still gain custom. The old assumption that serious floods would not occur more than once every 75 years is no longer a reliable basis for working out insurance cover.

In response the government has said it is unfair to suggest that nothing had changed in response to last years floods. Local council and the Environment Agency have increased measures designed at restricting building on flood plains and the government recently announced it would bring forward a bill designed to give both the EA and local councils more powers to prevent flooding.

Never the less, the dangers of flooding are more prescient than ever before. This is largely due to inadequate sewage and drainage systems which was the primary cause of flooding last year.

Whatever the ultimate resolution of the flooding crisis, it seems that if the weather continues to be more unpredictable moving into the next decade, house insurance could be more difficult to purchase at reasonable premiums. The productive route is to research and investigate as much as possible. This may mean scouring the internet for quotes and appropriate coverage independently of an agent; forget the middle-man and you will achieve better results. Rias, for example, are one of many companies now offering home insurance quotes online.

Take the time to compare potential insurance providers, it will pay off when you find a good deal; despite the ever-changing movement of the weather and other expository factors and their implications on insurance premiums, rounding up quotes and not relying on an agent, can keep you in the loop.