The Association of British Insurers (ABI) has said tougher planning controls are needed if flood insurance is to remain widely available for new homes.
According to the ABI, one third of the three million new homes the Government plans to build by 2020 will be built on flood plains.
Speaking at the Architects Journal conference, Justin Jacobs, the ABI's Assistant Director of Property, warned: "The Government's ambitious housing plans are in jeopardy unless we reduce the flood risk.
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"Where a local authority plans to ignore flood risk advice, the Government should step in and review the proposals and be compelled to publish their decision," he said.
"Insurers want to continue to provide flood cover, but poor planning decisions will lead to more homes becoming unsaleable, uninsurable and uninhabitable.”
In the last year 13 major developments have been given the go ahead despite Environment Agency advice on the flood risk. Seven of the sites are deemed to be at high risk from flooding.
The ABI says last summer's floods cost the insurance industry more than £3bn, and combined with other weather phenomena, make 2007 the worst year for weather related claims.
(VB/JM)
