Last updated 16:42, Friday, 27 June 2008

More than half a million homes could become uninsurable unless the Government takes steps to protect them from flooding, insurers have warned.

The Association of British Insurers said the Environment Agency had identified 517,000 homes as being at a ‘significant risk’ from flooding.

It warned that its members may not be able to continue to offer cover for them unless the Government ensures adequate flood defences are in place. The trade association is calling on the Government to carry out a thorough assessment of the current flood risk, particularly focusing on the problem of flooding from drains.

The group said of the 180,000 flood insurance claims its members handled following last summer’s flooding, half were floods that had been caused by water coming up through drains.

It also wants a more co-ordinated approach to flooding to be adopted, with the Environment Agency put in charge of all aspects of flooding and flood risk, rather than the current system were different bodies have responsibility for different things. Insurers have agreed to continue offering cover to properties that are at risk from flooding at a price that reflects the risk providing the Government puts adequate flood defences in place.

But this statement of principles is currently under review, and even if insurers continue to offer cover, if the risk increases significantly, premiums could become unaffordable. The group, which is holding a floods conference today, said research showed three-quarters of people think not enough is being done to tackle flooding.

There is also widespread concern that government plans to build three million new homes by 2020 could significantly increase the risk of flooding.

Nine out of 10 people said new homes should only be built in flood risk areas where there are adequate flood defences, while three-quarters of people thought the Government should abandon its target to build three million new homes by 2020 if it would lead to more homes being at risk from flooding.

A further nine out of 10 people also said they would like to see the introduction of a new kite mark to show that new homes were built to flood resilient standards.

The research found that eight out of 10 people in areas affected by last summer’s floods think the danger of flooding is increasing, something 64 per cent of the public agree with.