Flood Insurance Concerns continue says London Mortgage Broker, London Mortgage Advice. Monday, 22nd June 2009

Following news that one in six homes is at risk as rainfall across the country increases with many potentially facing the insurance nightmare of affordable insurance cover being withdrawn, the property industry is echoing calls for the government to double flood prevention spending.

Spending must increase from £570 million a year to £1 billion per year to avoid around £4 billion of yearly damage from flooding, the Environment Agency said last week.

The governmentmust act now, believes the British Property Federation (BPF), which represents developers, investors and agents, and that not doing so could not only impact new development but also insurance for existing homes and businesses. There is a very real possibility of affordable cover being withdrawn in areas of high flood risk, it says.

As valid property insurance is one of the terms set out by lenders, no insurance cover would mean no mortgages,.

“These figures are a wake up call to the Government to increase the resources they dedicate to fighting the risk of flooding,says former head of property at insurance firm Aon, Bill Gloyn, who chairs the BPF’s insurance group, this will reduce the chances, and severity, or future flood events but also provide much needed confidence to the insurance industry to continue to provide flood cover for households and businesses