10:47 AM, 7th March 2012, About 11 years ago 1
Commercial landlords could find their properties are without insurance in a few months if the Government fails to provide the flood protection insurance companies expect.
The current agreement runs until July, and the Government’s cuts are hitting flood defences. As a result, premiums will increase and some properties are being quoted with insurance of £20,000 a year.
With insurers still unhappy, some landlords will have trouble finding any insurance at all as some cover could be withdrawn completely. This will have a negative effect on the values of the buildings, as well the threat of breaching mortgage contract.
Jonathan Hackett, Client Development Director at property insurance specialist Cadogan Keelan Westall explains: “Flood protection has to be a national priority for the Government as there are potentially thousands of commercial properties and businesses at risk.
“Property owners in flood-prone areas may find their properties very difficult to insure later this year and face the potential of very high premiums, significant reductions in value and less access to mortgage finance. What is more worrying is that property owners may also face the potential danger of action taken by the mortgage lender due to breach of the mortgage agreement. Unless the Government acts quickly to increase the investment in flood prevention, the long term prospects of properties at risk is very worrying.”
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