Briefing: Guidance on insurance issues for new developments

Buildings will be increasingly vulnerable to the effects of severe weather due to climate change. This will impact on the cost and availability of insurance unless steps are taken to reduce the risk. The insurance industry can drive adaptation to climate change by influencing both property developers and prospective buyers. Buildings must be located and designed to ensure that they are able to withstand climate change - particularly increased flood risk. Insurers will only be able to insure buildings - vital to ensure that they are sellable - if this risk is managed to acceptable levels. The purpose of this briefing is to introduce guidance from the Association of British Insurers to help developers, planning authorities and people buying new properties to build and buy properties that rise to the challenges presented by climate change. The guidance recommends that developers follow national planning policy statements, provide buyers with information on climate risks and how they are managed, and develop publicly available standards or kitemarks that certify enhanced resilience to climate change impacts. Furthermore, before buying a property in a new development, prospective owners are advised check the flood risk and obtain information on measures taken to reduce it.