PwC: flood premiums could jump 50%

Home insurance premiums could rise by up to 50% in areas worst affected by flooding, according to PwC.

Insurance partner Mohammad Khan said: “Following the latest floods in the UK, we expect insurance renewal premiums to rise between 10% and 50% depending on the severity of flood damage caused.

“Even those not affected, are likely to see their premiums rise by up to 5% - flood damage therefore is not only a problem for those currently affected, but one for the UK as a whole.”

PwC catastrophe expert Domenico del Re added that current planning laws require only a flood risk assessment for new homes.

“Legislation to ensure new builds in flood risk zones are built to specific flood resilient requirements would be one solution to help limit future flood damage”, he said.

“There will inevitably be a tension between meeting the current housing demand and finding the best possible land and infrastructure to support it but, as recent events have shown, you can’t have one without the other.”