Axa boss says house prices are at risk without flood insurance deal

City A.M. Reporter
HOMES could become impossible to sell if the government fails to agree a new flood deal within the insurance industry, one of Britain’s top insurers warned yesterday.

Paul Evans, Axa’s UK chief executive, says homeowners could be stuck in properties that have become almost worthless. An existing agreement to offer insurance all at-risk households in return for government investment in flood defences expires at the end of June, while progress on a new deal appears to have stalled.

“We are extremely concerned about the impact on homeowners. Homes would be unsellable. There would be the worst of both worlds: people would be trapped in homes that they couldn’t afford to insure and wouldn’t be able to sell,” Evans told the Independent on Sunday.

Insurers are backing a levy system to subsidise homeowners in areas at high risk of flooding. But the government is reluctant to underwrite the deal.