Flood risk threatens home insurers

Story link: Flood risk threatens home insurers

Insurance companies are laying into developers, warning that the best interests of property buyers are not being looked after as planning officials continue to allow building developments on flood plains.

Astonishingly, as many as 1 in 6 homes in the UK is at risk of flooding, which is a stagger figure:

Floods could cost £4bn per year by 2035

Home insurance firms are set to lose £4 billion a year by 2035 on repairing flood water damage unless the industry takes the lead in creating a flood prevention strategy.

Insurance companies should work with the Environment Agency and local authorities on putting flood prevention measures in place and making homes flood proof, Co-operative Financial Services said.

This is certainly a different tact that insurance companies normally make, usually looking to push discounts onto consumers in order to get them to buy.

Perhaps there is a discontinuity between the sales teams and risk assessment teams? :)