Home insurance premiums 'could rise for everyone'

Premiums on home insurance could rise across the country if the government cuts flood defence spending, an expert has said.

Contents and buildings insurance premiums would rise for homeowners across the UK if the government cuts spending on flood defences in the near future, an expert has said.

Simon Douglas, director of AA Insurance, has said that hundreds of thousands of houses throughout the country may struggle to obtain effective home insurance if reductions are made in flood-prone parts of Britain, while premiums on annual insurance deals could therefore increase nationwide.

The specialist went on to say that "many leading commentators in the insurance industry" feel that spending in these areas should be "significantly increased, not cut" in order to help local authorities deal with and reduce the risk of flash flooding in their region.

He added that the "upward movement" witnessed in home insurance recently could be boosted further should the Conservative-Liberal Democrat alliance take these measures in its Comprehensive Spending Review in the autumn.

Meanwhile, any students in flood-prone housing may be particularly affected as research by Marks & Spencer recently revealed that 48 per cent of scholars do not have home insurance.

By Emma North