Aviva CEO warns post-2009 builds may be uninsurable due to flood risk

Aviva chief executive Amanda Blanc has warned that many new homes built after 2009 in areas prone to flooding could become uninsurable. The concern centers on how flood risk is covered when the current insurance safety net, Flood Re, mainly covers homes built before 1 January 2009. This explainer outlines what happened, who could be affected, and practical steps for homeowners and buyers, with plain-language explanations of the terms involved.

What changed and why it matters

The key issue is a policy rule: under Flood Re, a government-insurance partnership, eligibility for affordable flood cover mainly applies to homes built before 1 January 2009. Newer builds are increasingly outside this safety net. If insurers assess flood risk as high for a post-2009 property and Flood Re does not apply, homeowners could face higher premiums or potential difficulty obtaining flood insurance. This is a shift from a relatively standardized price for flood cover to a system where post-2009 homes may rely on standard market terms that reflect risk, potentially making cover more expensive or harder to obtain for some buyers and builders.

Key facts explained in plain terms

• Flood Re is a joint government-insurer scheme designed to keep flood insurance affordable for high-risk homes. It helps keep premiums predictable for many properties.
• Eligibility under Flood Re generally covers homes built before 1 January 2009. Newer homes may not qualify.
• If a property is not covered by Flood Re, insurers base premiums on the assessed flood risk for that specific property, which can be higher.
• Amanda Blanc’s warning points to a growing insurance gap for post-2009 builds in flood-prone zones, potentially affecting affordability and availability of cover.

Who is affected

Primarily, homeowners and buyers of houses built after 2009 in flood-prone areas. Builders and developers of new housing in flood-risk zones could face higher insurance costs, which can influence resale value and ongoing maintenance costs. Local councils and housing developers may also feel downstream effects if insurance availability becomes a constraint on new-build projects.

Practical next steps for readers

• Check your property’s Flood Re eligibility status and discuss options with your insurer or mortgage lender if you own or are buying a post-2009 home in a flood-prone area.
• Ask builders or developers about flood risk assessments and how insurance will be arranged for new homes in your area.
• Consider flood defenses and risk-reduction measures that can lower risk scores in insurance assessments (e.g., raised electricals, proper drainage, barriers).
• If you’re buying, request an independent flood-risk report and compare quotes from multiple insurers to understand cost differences.
• Follow local planning and climate-adaptation efforts, as policy changes could alter eligibility and pricing in the future.

Limits and questions

Note that the source describes a perspective from Aviva’s chief executive and references a broader policy framework. It does not establish new legislation by itself. Readers should verify with insurers for current eligibility rules, as policies and schemes can evolve. If you live outside the affected area or your home is pre-2009, the implications may be different. For uncertain cases, seek professional financial advice.

Information and responsibility notice: This article is general information based on the cited material available when published. It is not legal, tax, immigration, medical, financial, banking, or investment advice; it does not create a professional-client relationship; and it is not a guarantee of outcome, availability, accuracy, or eligibility. Rules, schedules, prices, and third-party information can change. Confirm material decisions with the relevant authority and an appropriately qualified adviser before acting.