Legal loophole means many may never be able to sell their homes.
The village of Powick in Worcestershire is guarded by a 6 ft-high flood defence barrier costing £765,000. Getting this vital protection was hard-fought and took months of fundraising, but the local residents, who’d suffered a devastating flood in 2007, thought the battle was worth it.
Not only would their homes be safe from the River Teme but they could keep having their property insured and protect its value.
However, some of them are discovering that a legal loophole means they face insurance bills of £10,000 a year; may be barred from any cover; and might never be able to sell their homes.
This is because an agreement between insurers and the Government that guaranteed cover for flood-risk properties has come to an end. And new rules that would help keep their insurance premiums low do not come into force until next year.
As a result, insurers are able to back out of existing deals they have with homeowners, and hike premiums. Potentially, 5.5 million homes in flood-warning areas could be left stranded.
Read more: http://www.dailymail.co.uk/money/mortgageshome/article-2551804/Our-village-paid-765-000-flood-defences-insured.html#ixzz2sRP6hi8h