December 2010 - 1 in six homes face flooding

One in Six Uk Homes at Risk of Flooding

One in six homes in the UK is currently at risk of flooding. Nearly 500,000 people face a significant flood risk and it has been estimated that this could rise to 840,000 by 2035 without adequate investment in flood defences.

This news comes after the coalition Government announced that it would be cutting Government spending in flood defences, committing £2 billion over four years to 2015, whereas the previous government allocated £2.15 billion over three years to 2011.

Research carried out by the Association of British Insurers (ABI) has shown that the cost of flood damage since 2000 has jumped by 200% on the previous decade. The events in Cockermouth, Cumbria 12 months ago and the recent flooding in Cornwall have made everyone aware of the devastation caused by flooding and highlighted why insurance is so important.

At its flood conference "Fighting Flood Risk Together" the ABI stated that since 2000 insurers have paid out £4.5 billion to customers whose homes or businesses have been hit by flooding compared to £1.5 billion paid in the previous decade, a real terms rise of 200%.

The association explained that the reasons for the rise in flood costs include the increased frequency and severity of flooding in the UK and the growing problem of surface water flooding. It has been previously estimated that the total value of assets under flood risk exceeds £200 billion - more than the current budget deficit.

Barry Smith, chairman of ABI's property committee and chief executive of Ageas UK, stressed that: "Millions of customers rely on the financial protection provided by flood insurance, and insurers are determined to do everything possible to ensure this continues."