Insurers warn on flood-risk building

THE Government could leave millions of homeowners uninsured if it continues to approve property construction projects in areas with a high flood risk.

The Association of British Insurers has warned that its members will not cover homes that have a high risk of being flooded each year.

It wants new developments to be restricted to the lowest risk parts of plains, warning that climate change will make floods more frequent and harder to control.

ABI acting head of general insurance Jane Milne said: 'We recognise the need for new housing, and the pressure this places on identifying suitable land. However, as the impacts of climate change intensify, the long-term sustainability of new communities could be threatened unless the Government puts in place strong measures to ensure that the flood risk is adequately managed.

'In this way, insurance can continue to be available to the vast majority of homeowners.'

The ABI claimed there are serious loopholes in the Government's current planning system policy. The Environment Agency is consulted on less than 60% of applications in the floodplain and at least a fifth of proposals where the EA objects are still approved by local councils.

The association wants existing rules strengthened to ensure the EA is consulted on all applications in flood risk locations and future flood risk charts should be used to prioritise locations for new housing, rather than current levels.

A spokeswoman for the Deputy Prime Minister's office, which handles planning applications, said developers now take into account flooding risks when designing developments.

If a development is within a floodplain, it now must include open spaces for floodwater to accumulate in the risk of a river bursting its banks.

'Rather than building ever-higher walls, developers must develop green spaces or walkways where food water can accumulate. An example of this is the large area in front of the Tate Modern.'

As part of the Government's plans to build 1.1m new homes in the South East, 120,000 homes have been earmarked for the Thames Gateway.

It is currently working on plans to improve flood barriers to offer better protection to 80,000 homes throughout the UK by 2006.