Much has been made about government plans to build three million new homes by 2020. What is probably less well known is that several of the locations earmarked for development are considered high-risk flood areas, including large parts of the Thames Gateway, east of London
It is estimated that more than five million people live or work in flood risk areas in England and Wales alone. We think it is in the consumer interest to oppose newbuild on flood plains, as it makes future householders vulnerable.
If new homes are built on flood plains, it will be difficult for consumers to get building and contents insurance. This issue is already affecting existing homeowners, who after the high-profile floods of recent years, are finding it difficult to get insurance cover. Last summer 180,000 people made claims for flood damage over a period of two months.
The National Consumer Council thinks that where companies have previously insured houses they should continue to do so. We would like to see insurers treat existing policyholders living on flood plains, or those taking over houses previously insured, fairly. We can see no reason why insurers should withdraw insurance for people who already hold policies, or price them out by increasing premiums by so much that they are dissuaded from taking insurance.
Not all properties on flood plains are likely to flood every year, so we think that insurers have enough scope to spread the risk and ensure they can offer policies to homeowners who need them the most. There are continuing discussions between the Environment Agency and the Association of British Insurers on the whole issue of flood defence, which we hope will ensure that consumers are able to insure their homes as they always have - even if they are located on flood plains.
Jill Johnstone, director of policy at the National Consumer Council
