Home insurance experts have warned that homeowners whose homes are considered to be at risk from flooding may find it difficult or even impossible to find insurance cover.
The warning comes in the wake of Government cuts to funding for flood defences.
Although £500 million has been ‘earmarked’ for flood defences each year (from 2011), this is a reduction of £216 million a year.
Experts are worried that lack of insurance cover may lead to a lack of mortgage offers, which could decimate the property market in ‘at risk’ areas like riverside / coastal locations and those properties on low laying ground.
There are already some areas in the UK were insurance cover is unavailable because of their flood history.
photo credit: mollypop
This story first appeared in our weekly homeowner newsletter – week beginning Monday 13th December 2010 – click here to read the newsletter in full.