HomeHome and Contents Insurance. Floods and global warming threaten your home insurance.
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At it's current rate, global warming threatens 1.5 millions homes with flood damage. If global warmings' devastating effect continue, by the year 2030, the affected homes figure could mushroom to 3.5 million.
It's as normal in an insurance package as butter is to bread, but now, to insure your home against flood damage, in some areas, could become impossible. Furthermore, ( life insurance adviser ) mortgage lenders won't lend on homes that are uninsurable and as a result, the value of the home could fall by a massive 80 per cent.
According to a recent survey, 6.5 million homes in the ( remortgages ) UK are already considered at risk from flooding. Of those homes, 1.5 million are in 'high risk' areas.
While the government has completed flood defences in areas considered to be 'high risk' zones, protection for a further 80 000 homes is still needed by the end of this year. Further ( car insurance quotes ) concern is expressed for an even further 120 000 new homes planned for the Thames Gateway which could potentially be another 'high risk' zone.
But, there may be a loop hole; in 2003 the Association of British Insurers (ABI) agreed principles which committed UK insurers to offering home and contents insurance ( mortgage quotes ) for properties in areas which were assessed at being vulnerable to flood damage only once in 75 years or more. However, the rider was that the flood defences had to be already in place or would be completed by the end of next year.
The responsibility for developing and maintaining these flood defences lies on the shoulders of the Department for Environment, Food and Rural Affairs (DEFRA) and the insurance industry isn't at all convinced that progress on the project is sufficient.
As a result, the insurers have warned the government that there could be widespread withdrawal of insurance cover if progress isn't stepped up.