Government Agreement With Insurers For Flood Risk Housing
Summary:
The increased levels of flooding in the past ten years, have made countless homes uninsurable. This article looks at the new plans the government has agreed with insurers to permit more householders to obtain cheap home insurance . However, there will be a number of people that still cannot get it.
Thousands of homeowners will still be able buy invaluable insurance against flooding. It has been revealed that insurance companies have reached an agreement with the government after they consigned to a continuing flood protection arrangement.
Under the agreement, insurers have guaranteed to give cover to all properties believed to have a riskof less than one in fifty five from flooding.
On condition that policies are in position to reduce the risk to an acceptable level within the coming six years, insurers will carry on making insurance available to existing small business customers and domestic. The Environment Minister said that to realise these plans the government has committed itself to a long term twenty year campaign to develop flood dams.
The government proposes to improve fortifications and urge homeowners to safeguard their homes would mean that current statement of principles approved by insurers could finish in 2016.
This deal comes over a year after floods damaged areas of Gloucestershire, Hull and the Midlands. These floods produced 183,000 claims for flood-harmed houses, businesses and cars. Settlements from insurance companies came to an eye watering six billion pounds.
The Minister told BBC World Service Events programme: “The insurance companies very pausibly said that it is important to have a long-term policy – twenty seven years is the figure that we are proposing.
“We are examining coastal flooding and surface water flooding as well as river flooding, to check that the enlarged investment that we have, is maintained in the long term.”
On the other hand, the spokesperson omitted to say how many properties may fall outside the one in 75 risk group and be graded as not impregnable against floods, saying just: “That isn’t for government to declare.”
He also stated how necessary it was that the Environment Agency makes use of its new controls to prevent any new industrial or housing developments that may be in jeopardy from flooding. He also said that life assurance companies were now geared up to offer better premiums to property owners who take action to make their homes resistantagainst the possibility of rising flood waters
He added: “What has changed is the climate change forecasts that the experts are giving us – that the severe weather conditions are going to mushroom in the next ten to twenty years.”That entails a long-term plan … It is something we have been negotiating with the insurance market. They, quite justifiably, want to have guarantees that properties are safeguarded and we, quite justifiably, want to do that regardless.”
A Director of the Association of British Insurers (ABI) said the deal would guarantee flood protection remained widely available to householders.
“This agreement is tremendous news for everybody in danger of flooding,” he added. “We are elated that the government accepts that a long-term investment proposal, properly funded, is the best way to handle the growing flood danger.”
The Association of British Insurers (AIB) had previously warned that more than 500,000 houses may turn out to be uninsurable, unless the government invested more in our flood defences.
Brokers Online is a specialist uk finance website offering its clients access to many insurance products from home insurance to redundancy insurance .
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