Home-owners in the Shepway area could face problems getting home insurance after an agreement between the Government and insurers expires in June 2013.
Data from the Association of British Insurers highlights that 7,196 houses in the area are said to be at significant flood risk. Currently, insurers are obliged to provide cover for homes at risk. People in lower flood risk areas pay slightly more in premiums to subsidise those at higher risk, and those in high-risk areas are set to their existing insurance plan.
The ABI is warning that if this obligation does not continue after 2013 then home-owners in high risk areas may find it impossible to insure their homes. The Public Accounts Committee has urged the Department for Environment, Food and Rural Affairs to secure a new agreement while working with the insurance industry.
Around £1.1 billion a year is spent on building or improving flood defences and protection. But the PAC says that there is a great deal of uncertainty about whether there was enough money to keep doing this long-term.
