Young: only approved housing will be insured

The Environment Agency is to join forces with the insurance industry to ensure that only housing developments that it approves  are eligible for cover against flood damage.

Agency chief executive, Barbara Young this week confirmed  that she was meeting the Association of British Insurers (ABI) to hammer out a deal to outlaw cover for properties built with insufficient flood defences.

“A lot of work has to be done to get flood policy into development policy,” said Young, opening NCE’s water summit in London this week.

“There is a high priority for homes, especially affordable homes.

“If developments do not follow our advice, we will make sure they are very difficult to insure.”

Young reminded delegates that she was “against developing in flood plains,” but she accepted that  developments with full flood mitigation measures would be acceptable.

However, she described last week’s announcement by housing minister Yvette Cooper of a £500M package to fast-track new housing sites, particularly in the southeast, as “injudicious”, as it could push developments to be built in flood-prone areas.

Young also said that she wants details of flood risk to be included in Home Information Packs (HIPs), to give homeowners more information about the properties they buy.

An ABI spokesperson confirmed that it would go against developments in flood plains.

“But as a last resort, they should have adequate flood-protection measures in place,” he added.

“It is a commercial decision for members to take, but companies will not be rushing to insure homes that are vulnerable to flooding,” he said.

A spokesperson for Department for Communities and Local government said that the new PPS25 planning rules introduced last year made it clear that local authorities should not approve new housing in areas where the Environment Agency has advised against it.

“Councils should look for areas away from flood risk for new development and they should already work with the Environment Agency to ensure that new plans avoid flood-risk areas, and that new homes are properly protected,” she said.

“If they do not accept the advice of the Environment Agency and wish to go ahead regardless, then government is prepared to call in the decision.”

“The Association of British Insurers backed the new planning rules last year and made clear that they will provide cover against flooding on all new developments that comply with those rules and Environment Agency continued investment in flood defences,” the ABI spokesman confirmed, to NCE.