The twin effects of climate change and development on flood plains have become increasingly problematical for home owners and property insurers. Greater amounts of rainfall generally and more and more exceptional weather incidents have resulted in the insurance industry facing ever-rising flood-related insurance claims. In the UK, summer 2012 was the wettest for a century and in June alone flood claims were running at circa £17 million per day.
All of this means that properties in flood-prone areas are increasingly expensive to insure. Some are completely uninsurable.
Since 2000, in response to the increasing risk of flood damage to vulnerable properties, there has been an agreement in place between Government and the insurance industry (represented by the Association of British Insurers) whereby insurers would continue to offer insurance cover on vulnerable properties in return for guaranteed levels of public spending on flood defences.
However this agreement ends in 2013 and has now been superceded by a new agreement to take effect in 2015 under which all homeowners, not just those affected by flooding, will pay £10.50 per annum to help cover the cost of flood damage, thereby reducing insurance costs of those directly affected. In fact homeowners have, for some time, been paying this amount, but the arrangement is now being formalised.
Insurers will continue to offer renewal terms on vulnerable properties although the premiums will still be high when compared to low-risk properties. The premium differential for equivalent properties in high and low risk areas can be as much as four times.
If a property is in a high flood risk area there is no guarantee that insurance will either be available, or available at reasonable cost and the new agreement does not change these facts. Information on flood risk is available via the Environment Agency.
This page was created by --Martinc 17:05, 10 July 2013 (BST)
 Related articles on Designing Buildings Wiki
- Environment Agency.
- Flood and Water Management Act.
- Flood risk.
- Flood risk management plan.
- Future Water, The Government’s water strategy for England.
- Joint names policy.
- Planning for floods.
- Pitt review.
- Rainwater harvesting.
- River engineering.
- Sustainable urban drainage systems.
- Thames barrier.
- Water engineering.
 External references
Featured articles and news
Despite dividing opinion since its 1955 completion, Stalin's gift to Poland, the PKiN, is still Warsaw's most recognisible landmark.
Graduate Engineer Brittany Harris asks, what makes a great place to work?
Mayor Sadiq Khan publishes new guidance aimed at fast-tracking affordable housing projects through planning.
An estimated 90% of our time is spent inside, so could urban allotments be the answer to increasing health and wellbeing?
Why disputes occur and how they can be avoided.
Understand each building and its needs before exploring technical solutions and hiring consultants.
BSRIA report suggests smart connected HVAC is revolutionising the US and could do the same elsewhere.
The project is finally cancelled, following withdrawal of support by the Mayor.
‘Device to Root Out Evil’ - an upside-down, New England-style church built with its steeple in the ground.
The Grenfell Tower fire highlights the need for a holistic approach to fire safety engineering.
Opinion is divided on whether Brexit will undermine mega construction projects in the UK.
Still relevant, and still not fully implemented. Read about the background to, and recommendations of 'Constructing the Team'.