According to the Environment Agency and the Climate Vulnerability Monitor, flooding in the UK is set to get considerably worse over the coming decade. This view is increasing pressure on the insurance industry and the Government to come to an agreement on a new ‘statement of principles’, which will, it is hoped, ensure that properties in flood-prone areas are insurable.

The current statement is set to expire in June 2013, which, if not updated, could mean that many properties in flood-risk areas are uninsurable. While ministers and insurers progress towards an agreement whereby vulnerable properties can be covered, local authorities and Government departments have been improving flood defences in flood-prone area across the UK. Customers who are protected by such products as our home, holiday home and unoccupied property insurance policies will be keen to see improvements in flood defences wherever possible.

There have been a number of successful, high profile flood defence projects in recent years, such as the £38 million defences around Carlisle, which is estimated to be protecting around 1,500 properties in the city.

Flood risk is a key factor affecting the cost of home insurance. Properties in London and the South East are the most costly to insure, while those in Wales and the West Country are the cheapest