Homeowners up and down the UK whose properties are prone to flooding are seeking advice over worries about losing their insurance come July.
The Statement of Principles, a government led initiative which obliges insurance companies to continue to offer flood cover as part of their standard policies, will expire in July.
The agreement doesn't guarantee cover for certain properties, particularly those which encounter continual flooding.
The Association of British Insurers (ABI) has said its members would voluntarily continue to offer homeowners flood insurance for another month after the Statement of Principles expires.
Commeting on the ABI’s voluntary commitment to extend flood insurance, Alan Cripps, RICS Associate Director, Built Environment, said:
"It is critical that the government and insurance industry reach an agreement during this period.The implications for the property sector of the Statement running out, even with this voluntary extension, are simply staggering.
"First and foremost there are of course those people at risk of flooding. However, this has much wider ramifications for all property owners. Surveyors are responsible for the valuations that underpin insurance agreements; without that insurance it will be nigh on impossible to get a mortgage; without a mortgage many people will be unable to purchase property; and if properties are not insurable or mortgageable there will be a dramatic impact on their value.
“This has the potential to rule out existing residential stock at a time when we’re desperately trying to close a housing deficit; and it will also drive commercial businesses away from flood risk zones, deterring investment and provision of services”.
