Insurance warning as gales threaten

BUILDING insurance premiums could soar in London and the South-East in the coming years unless more is done to defend homes from storm damage, a new report warns.

Climate change is expected to push wind speeds in the South of England up by as much as 10% and dramatically increase the frequency of major storms.

An average of 200,000 UK homes a year suffer wind damage, more than those affected by flooding.

The Association of British Insurers is writing to the Government to warn ministers to tighten building regulations and safeguard against a sea of claims in the future.

Jane Milne, the ABI's head of household and property, said: 'If we don't start managing this we will have a situation where insurance will cost a lot more and insurers may need to change conditions as far as excess is concerned. Last year's storms were a stark reminder.'

Property insurance claims hit £2.1bn after the storms of 1990 and the average bill from weather-related damage has risen to £825m a year in the past decade.

A study commissioned by the ABI shows that London and its surrounding area are most at risk in the future due to the high percentage of older properties and the fact that depression tracts are due to shift south from the North Atlantic.

It argues that building codes for new homes, such as those planned for the Thames Gateway, may have to be tightened by 10% and those for existing homes amended to strengthen roofs. Storms 12 months ago, which brought gusts of 70 mph to the capital, caused insured losses of more than £150m.

Globally since 1987, storms have caused $8.1bn (£4.78bn) more insured losses a year than flooding.