Aviva Boss Warns Flood-Risk Homes Could Become Uninsurable 2026

Aviva boss Amanda Blanc has warned that new English homes built in flood-risk areas could become uninsurable in the future, calling the situation "dangerous" for the UK property market.

In an interview with the BBC's Big Boss Interview podcast, Blanc said the flooding threat is "absolutely increasing" and questioned why homes continue to be built on land prone to flooding. "You've seen a very dry summer, and what happens if you then get heavy rain on very dry surfaces is you get more surface water flooding," she said.

Scale of the Flood-Risk Housing Problem

Blanc revealed that 110,000 homes have been built in flood areas over the past decade. If construction continues at the same pace, a further 115,000 new homes will be built in flood-risk zones over the next 10 years. "That doesn't seem to me to make sense. We need to think about where those homes are being built," she said.

According to government figures, about 6.3 million homes and businesses in England are already at risk of flooding. This represents a significant portion of the UK's housing stock and poses a growing challenge for insurers and homeowners alike.

Why Flood Insurance May Become Impossible

Blanc explained the fundamental insurance principle that makes inevitable flooding so problematic. "If you think that there's an inevitability of something happening, that's not what insurance is, right? Insurance is a pool where you know there's a risk that something happens for some people and not for others. When there is an inevitability, it makes it very difficult for it to be insured."

She added: "It's very well known where these flooding areas are. Let's think very carefully about homes that are being built."

Comparison: Current vs. Projected Flood-Risk Homes

Key Takeaways for Homeowners and Buyers

• Check flood risk before buying a property using Environment Agency maps.
• Insurance premiums in flood zones are rising and may become unavailable.
• Flood Re, a government-backed scheme, currently caps premiums but is set to end in 2039.
• New builds in flood-prone areas face the greatest long-term risk of uninsurability.
• Planners and builders are being urged to reconsider development locations.

What This Means for the UK Property Market

If large numbers of homes become uninsurable, their value could plummet, leaving owners unable to sell or secure mortgages. Lenders typically require buildings insurance, so uninsurable properties become effectively unmortgageable. This could create localized housing market crashes in flood-prone regions.

Blanc's warning adds pressure on policymakers to tighten planning rules and invest in flood defenses. The insurance industry is already adapting, but without action, the burden will fall on homeowners and taxpayers.

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