19/06/2009 - Floods threat to business insurance
Insurance cover for businesses is likely to be hit hard by rising flood risks connected to global warming.
According to the Environment Agency, the south-east of England and the flatlands of East Anglia are likely to be the most affected. It warns that £20 billion will need to be invested over the next 25 years to provide flood-defence protection against rising sea levels and torrential rainstorms.
Offices, factories and warehouses will have at least a one in 75 chance of being flooded every year, while health centres, schools, rail links and roads will also be at increased risk. According to its Flooding In England report, 5.2 million properties are already at risk: 2.4 million from rivers and the sea and 2.8 million from from overflowing drains.
In a wake-up call to businesses, it warns that the annual cost of damage to commercial and residential properties might rise from £2.5 billion to £4 billion.
The highest number - 111,356 - of properties at significant risk are in the south east of England, while Boston in Lincolnshire has the greatest number at high risk - 23,700 - of any local authority.
Copyright © Press Association 2009
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