Insurers warn developers on flood-risk

Insurance for new properties in flood-prone areas will be subject to increasingly stringent conditions, an industry body has warned.

Last year, the Association of British Insurers (ABI) said that many small businesses and over 500,000 domestic properties could become uninsurable if flood prevention was not improved across the UK.

Now, in new guidance, the ABI has set out advice for planners and developers on the provision of insurance for higher-risk developments.

It says that insurers will expect all new development to be approved by the relevant regional agency - the Environment Agency in England and Wales, the Scottish Environment Protection Agency or the Northern Ireland Rivers Agency.

Furthermore, it says that details of all specific flood-protection measures - such as raised floors, flood-resilient building materials and risk assessment - should be shared with the property's buyer.

Announcing the new guidance, director-general of the ABI Stephen Haddrill said that properties were increasingly vulnerable to damage from severe weather conditions resulting from climate change.

"We encourage the building industry to develop a kite mark scheme, so that buyers and insurers can easily see if a building has been designed to be climate-resilient," he said.

"Avoiding high flood-risk areas, and building better-protected buildings will enable flood insurance to remain widely available and competitively priced."

IMAGE John Giles/PA Wire