THE long-standing agreement between the Government and the insurance industry to subsidise insurance for homes and businesses in high flood risk areas such York will come to an end in weeks.

Following protracted negotiations, action appears to have stalled, making the prospect of homeowners in flood-prone areas having to pay vastly inflated premiums more likely.

The deadlock over subsidising insurance for households in high-risk areas will not only affect insurance premiums and claims. It will impact on the ability to secure a mortgage, re-selling and ultimately the value of the property.

Flooding in the UK has steadily worsened and the Environment Agency expects 350,000 more properties to be at significant risk by 2035. Insurance could become unaffordable for many, unless the Government and insurance industry find a workable solution.

The uncertainty highlights the need for consumers to be more informed about flooding. Flood risk should be assessed at an early stage of property transactions.

Rapid and cost-effective flood risk reports are available which feature an assessment of the likelihood of insurance premiums being available at standard terms.

For existing property owners concerned about being refused cover or the impact on their insurance premiums, it may also help to accurately assess flood risk in advance of contacting insurers.

Chris Loaring, Commercial manager, Argyll Environmental.