Home Insurance - Flood insurance provision 'unique' in UK - 19/09/2007

The nature in which home insurance policies work in Britain in relation to extreme weather such as floods is "pretty unique", according to the Association of British Insurers (ABI).

In the wake of the wettest summer since records began 240 years ago (according to the Met Office), the ABI has pointed out that Britain is one of the very few places in which consumers can take out insurance cover specifically for floods.

"In other areas you have to buy it through state-backed schemes," an ABI spokesperson said.

"The UK is pretty much unique in that flood insurance is widely available. It has been since the early sixties and we see no reason why that can't continue."

However, the ABI was swift to draw attention to the threat to the cover the apparently increasing frequency of floods in the UK poses.

"We want it to continue," the spokesperson added, "but in the face of increases in flood risk, it is dependent on the government spending the money that is needed and spending it now."

While the possibility of climate change-driven catastrophic flooding becoming more and more frequent in future remains, the current chances of being caught up in one remain quite low.

According to the Environment Agency, London's chances of succumbing to a major flood currently stands at around 1 in 2,000, for example.
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