Latest Insurance News
Flood warning system extension 'will not affect property insurance premiums'
11 Feb 2010
Posted by Jonathan Walker
The Environment Agency (EA) has announced plans to extend its flood warning system, but homeowners should be assured it will not affect property insurance premiums.
Kelly Ostler Coyle, media officer at the Association of British Insurers (ABI), confirmed that the decision by the EA to double the number of homes and businesses that receive free flood warnings will not make a difference to policies.
Under the extended system, a further 500,000 homes will receive notice of impending deluges.
Property insurance premiums for these homes will not change as the decision does not indicate that they are at an increased risk of flooding, Ms Ostler Coyle said.
"Insurers already use the EA's flood maps and in some cases their own digital mapping," she explained.
"This is good news for home owners and business and sensible advice," Ms Ostler Coyle added.
The extension of the flood warning will take place at the end of February.
It was one of the key recommendations from the Pitt Review into the summer 2008 floods.
