Flood insurance customers facing uncertainty

Flood insurance customers are facing uncertainty regarding the future cost of their premiums, it has been claimed.

The British Property Federation (BPF) has noted prohibitively expensive deals could be on the cards in just four months’ time for those seeking this form of protection – and has therefore called for a joint approach between the government and lenders in order to prevent around 200,000 dwellings in high-risk areas being left uninsurable.

There is concern that such rises might result in homeowners and businesses being unable to settle high flood damage bills, while the ending of the existing Association of British Insurers and Government Statement of Principles deal in June 2013 will be felt by customers as early as July 2012 when they come to renew their arrangements.

Liz Peace, chief executive of the BPF, said: “This is a huge issue that is not getting the focus it needs and time is running out.”

The industry figure noted the change will affect banks and mortgage lenders as well as the housing industry, with abodes deemed uninsurable proving increasingly difficult to sell.

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