16th February 2008
Flood-risk homes and businesses 'uninsurable'
Thousands of new homes could be "uninsurable" unless the government introduces tougher planning controls, the Association of British Insurers (ABI) said this week.
Of the three million new homes the government plans to build by 2020, a third will be on the floodplain, warned Justin Jacobs, the ABI's assistant director of property.
Speaking at the Architects' Journal conference, he said that councils approved 13 major developments in the last year alone despite Environment Agency advice on the flood risk.
"Where a local authority plans to ignore flood risk advice, the government should step in and review the proposals and be compelled to publish their decision. Insurers want to continue to provide flood cover, but poor planning decisions will lead to more homes becoming unsaleable, uninsurable and uninhabitable."
Malcolm Tarling, spokesperson for the ABI, told More Than Business News that exactly the same considerations on flood risk apply to small businesses looking for premises.
"Mr Jacobs focused on homes because that is where a huge amount of development is going on through the government, but exactly the same considerations apply to anybody looking to build a property on high-risk flood plains."
"Our advice to firms is to check very carefully through the Environment Agency before you commit, or face higher premiums and even trouble getting insurance at all," he added.
However, housing minister Iain Wright rebutted the ABI's claims. "The government has introduced the strongest planning rules ever to ensure councils properly manage the risk of flooding," he said.
Of the three million new homes the government plans to build by 2020, a third will be on the floodplain, warned Justin Jacobs, the ABI's assistant director of property.
Speaking at the Architects' Journal conference, he said that councils approved 13 major developments in the last year alone despite Environment Agency advice on the flood risk.
"Where a local authority plans to ignore flood risk advice, the government should step in and review the proposals and be compelled to publish their decision. Insurers want to continue to provide flood cover, but poor planning decisions will lead to more homes becoming unsaleable, uninsurable and uninhabitable."
Malcolm Tarling, spokesperson for the ABI, told More Than Business News that exactly the same considerations on flood risk apply to small businesses looking for premises.
"Mr Jacobs focused on homes because that is where a huge amount of development is going on through the government, but exactly the same considerations apply to anybody looking to build a property on high-risk flood plains."
"Our advice to firms is to check very carefully through the Environment Agency before you commit, or face higher premiums and even trouble getting insurance at all," he added.
However, housing minister Iain Wright rebutted the ABI's claims. "The government has introduced the strongest planning rules ever to ensure councils properly manage the risk of flooding," he said.
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