Home Insurance Might Be Unavailable for 200,000 UK properties

According to the latest report on the website of the UK-based independent consumer group Which?, over 200,000 properties in Great Britain will not be covered after 2013.

The Association of British Insurance warns that houses falling into the flooding risk category might face problems getting insurance once the agreement between the UK government and insurers (Statement of Principles) ends next year.

At present, there is no commitment to extend the agreement.

Simon Douglas of the AA Insurance, is determined that "people want the government to take decisive action now, to ensure that their homes are protected. But that's not happening with the Environment Agency's budget cut by 10%."

He also highlighted that flood protection is a national priority and the British Government must find a compromise with UK insurance companies. Otherwise, those will be honest taxpayers who'll suffer from the floods and lose hundreds of thousands pounds.