Aviva has warned that an expanding number of homes in England could become uninsurable as flood risk intensifies.

Rising flood exposure threatens home insurance

The insurer’s chief executive, Amanda Blanc, told the BBC that England is “for sure” constructing houses that may one day be denied coverage. She said the trend reflects both a housing shortage and a pattern of development on flood‑prone land.

"England is for sure building homes that might be uninsurable at some point in the future," Blanc said.

According to the Environment Agency, roughly 1.5 million properties sit in areas classified as high flood risk, a figure that has risen sharply since the early 2000s. Climate‑related events such as the 2023 UK floods and this year’s severe storms have pushed insurers to reassess exposure.

residential street with floodwater and houses

Industry and regulator responses

Aviva’s warning adds pressure on the Financial Conduct Authority, which has already signalled a review of insurers’ flood‑risk modelling. Other major carriers, including Direct Line and AXA, have hinted at tighter underwriting standards for new builds in vulnerable zones.

Analysts at Bloomberg Intelligence note that insurers are increasingly factoring climate projections into pricing, which could double premiums for homes in the most exposed catchments within five years.

Implications for buyers and builders

Prospective homeowners may face higher costs or outright denial of cover unless they invest in flood resilience measures such as raised foundations or flood‑proof doors. Mortgage lenders, who often require proof of insurance, could tighten lending criteria for properties lacking such upgrades.

The government’s National Planning Policy Framework encourages construction on brownfield sites, but critics argue that many of these locations overlap with historic floodplains. A parliamentary inquiry scheduled for early 2027 will examine whether planning rules need to be tightened to curb future uninsurable builds.

For now, Aviva urges developers and local authorities to integrate robust flood‑risk assessments early in the planning process, warning that the financial fallout could ripple across the housing market if large swathes of stock become effectively uninsurable.