Household insurance in flood risk areas subsidised by £511 annually, says Axa
According to data from Axa, household insurance for homes in high flood risk regions is being subsidised by £511 each year. The insurer stated this means that homeowners in affected regions are only paying 42% of the true cost of insurance to protect their homes against flooding.
The latest figures were published as part of an Axa Parliamentary Flooding event in Westminster on the UK's flood defence strategy and funding debate.
Axa noted that the insurance subsidy issue arises through the operation of ‘The Statement of Principles' - an agreement which obliges existing insurers to provide cover as long as the government continues to invest in an adequate flood defence programme, leaving new insurers to come into the market and cherry-pick lower risk customers.
David
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