Home insurance problems for new houses

A large number of new homes are being built in a flood-risk area, potentially causing a home insurance concern, an expert has warned.

Particularly in the south-east of England, new homes are being built in areas at risk of flooding - which could eventually lead to home insurance claims when residents are in place, stated Andrew Lowe, the head of home insurance at Direct Line.

However, Mr Lowe noted that whatever the risk to a property, it is the duty of a home insurance provider to offer cover to its owners - as part of their obligation as a member of the Association of British Insurers.

There are no homes that are uninsurable.

The worst case scenario is if the home you are about to buy has already been flooded.

A spokesperson for the Association of British Insurers recently pledged to continue offering home insurance to UK residents in the face of rising water levels caused by climate change.

She also said that the body was urging the government to increase spending on flood protection.