Warning over insurance time-bomb for Shropshire
Thousands of Shropshire homeowners and businesspeople are facing an insurance crisis that could see premiums rocket or homes rendered unsellable in two months time, it was warned today.
An agreement between the government and the industry that guarantees a low price for buildings insurance in flood areas comes to an end in June.
Many homes could see costs spiral, while others may struggle to secure insurance at all.
It means uncertain times for areas along Shropshire's rivers.
Tony Conlon, of Shropshire insurance brokers Henshalls, said: "It's a very precarious and unstable situation, we are just two months from the end of June, and we don't seem to be getting near resolving the problem.
"An insurer will be able to refuse or escalate a premium so householders can't afford them, and they may put a substantial excess on them. If somebody can't get flood cover they won't be able to sell their property.
"Shrewsbury is on a flood plain and we have had instances of people in Copthorne being refused insurance because of their postcode."
Joanne Parsons, from Shropshire solicitors Linder Myers added: "We recommend that homeowners review their existing insurance policy before June for peace of mind."
