New housing in home insurance threat

Posted : 11-05-2006

New housing estates are being developed on land at risk from flooding because expert advice is being ignored, a Commons all-party select committee has warned.

The committee said that new houses were being developed on land patently unsuited for construction and criticised the government for failing to ensure the Environment Agency (EA) was fulfilling its role.

There is currently estimated to be in excess of five million people and some two million houses on land at risk from flooding. But as a result of this poor planning these homeowners are likely to face vastly increased home insurance premiums simply because developers did not choose a more appropriate location.

Some 693 houses were built on land in high flood risk areas in 2004, while the EA was consulted in just 60 per cent of cases.

As a result, the committee is recommending the government give the EA statutory consultee status for planning applications regarding developments in areas at high risk of flooding.

Owners who have bought a house located in an area at high risk of flooding can do little to mitigate the risk, but they can shop around to find the best quote. However, homeowners are urged not to scrimp on cover as flood damage can be truly devastating, both emotionally and financially.


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