Fears for heritage buildings and businesses after insurers refuse to cover flood-hit town
A town council has lost its insurance due to the frequency of flooding in its town, and a number of businesses are also finding they can no longer find cover.
Tenbury Wells in Worcestershire, near the south Shropshire border, has been flooded numerous times in recent years.
Last year, businesses suffered widespread damage when the town centre flooded after the Kyre Brook flood defence wall collapsed when Storm Bert lashed the region.
The Environment Agency initially allocated more than £17m for a new defence scheme including walls, embankments and flood gates. But plans were put on hold after a funding gap of between £8m and 13m was identified and the money distributed towards bespoke flooding help for individual properties.
Now Tenbury Town Council says its insurer, Zurich, will cease to cover council-owned properties from October 1.
The town council says this puts many of the town's heritage assets at risk.
A spokesperson for the town council said: “Tenbury Town Council has been informed by Zurich Municipal Insurance that, from October 1, 2025, its insurance policy will no longer include cover for flood damage to assets owned by the council.
“These assets include The Regal, The Pump Rooms and The Pavilion, which will place Listed heritage buildings at risk.
“Zurich originally announced in May 2025 that flood cover would end on June 1, citing the council's prior history of flood claims for its assets and the high risk of further flooding. Following urgent discussions, the council secured a short extension until October 1, 2025, to allow time to seek alternative insurance cover.
“Despite research of the insurance market and attempts to find affordable cover, no insurer has been willing to provide adequate and affordable protection. The council has made strong representations to West Worcestershire MP Dame Harriett Baldwin, who has raised the issue directly with Emma Hardy MP, Minister for the Environment, Food and Rural Affairs and the Treasury Select Committee. However, no government support has yet been offered.”
Councillor Robert Perrin, Mayor of Tenbury Wells, added: "Flooding is one of the greatest risks facing Tenbury. The loss of the council's insurance flood protection leaves important council assets exposed, but we will continue to fight for the protection our town needs and deserves."
West Worcestershire MP Dame Harriett Baldwin has said she has appealed to Zurich to reverse the decision and added that numerous businesses in Tenbury’s town centre have also been unable to access flood cover.
She said: “I was alarmed that Zurich decided to change its coverage policy, seemingly on the basis of media reports about the town’s flood cover.
“For many years, the company has offered flood insurance and now its position has changed and the town is having to find alternative quotes.
“My overarching concern is that I’m hearing reports that other businesses in the town are facing the same issue and this could have a serious impact on the future of the town centre if they can’t get affordable flood cover.
“As the industry body, I have met with the ABI to share my concerns and I am hoping that some pressure will be applied to encourage a competitive market for business property insurance.
“I’ve also written to the Treasury to highlight this issue and I encourage any Tenbury businesses who are facing similar issues to get in touch.
“The work to deliver individual property protection is progressing but this is yet another indicator that we need a fully-funded flood defence scheme.”
