Rise in flood risk could make one million UK homes uninsurable

Andrew McCorkell in the Independent: Homeowners living near rivers and the coast face losing up to 40 per cent of the value of their homes as flood risk makes them uninsurable. More than a million homes and 300,000 businesses are at risk, including those in parts of London, Southend, Brighton, Reading, Birmingham, Nottingham, Liverpool, Manchester, Hull, Middlesbrough, Blackpool, Glasgow and Edinburgh, the Environment Agency says.

The insurance industry points to evidence that climate change and rising sea levels will increase the likelihood of floods. It has an agreement with the Government – which runs out in 2013 – committing it to provide cover for customers, as long as flood risk is properly managed.

Insurers are expressing concern about cuts to investment in flood defences implied in the coalition's Comprehensive Spending Review, and the affect of funding cuts on extending the agreement – the UK is currently one of the few countries to provide flood coverage automatically through property insurance.

Nick Starling, of the Association of British Insurers, said: "We must ensure that our spending on flood defences and flood management is targeted to those areas where it is needed the most, and that the Government implements a long-term flood management strategy."…

A giant wave breaking over the breakwater with the The Big Green Bagel, a sculpture also known locally variously as the Donut / Doughnut / Seasick Doughnut Sculpture. Shot by Dominic Alves, Wikimedia Commons via Flickr, under the Creative Commons Attribution 2.0 Generic license