Summary:
The increased levels of flooding in recent years, have made numerous properties uninsurable. This article looks at the new plans the government has approved with insurance companies to allow more householders to purchase home and contents. However, there will be some that still cannot get it.
Thousands and thousands of homeowners will still be able purchase essential insurance against flooding. It has been revealed that insurance companies have achieved an agreement with the government after they committed to a continuing flood protection arrangement.
Under the arrangement, insurance companies have guaranteed to supply protection to any property judged to have a threatof less than one in seventy five from flooding.
Providing policies are in position to diminish the threat to an acceptable level within the next 6 years, insurance companies will keep on making policies available to existing small business customers and domestic. The Environment Minister said that to realise these plans the government has committed itself to a lengthy thirty five year strategy to improve flood fortifications.
The government aims to improve fortifications and urge householders to protect their properties would mean that current statement of guidelines approved by insurers could conclude in 2012.
This deal comes over a year after floods hit areas of The Midlands, Hull Gloucestershire. These floods produced 180,000 claims for flood-ruined businesses, cars and houses. Payouts from insurance companies came to an eye watering five billion pounds.
The spokesperson told BBC Radio 4 News programme: “The insurers very pausibly said that it is necessary to have a long-standing plan – thirty years is the figure that we are going along with.
“We are studying surface water flooding, coastal flooding as well as river flooding, to ascertain that the increased investment that we have, is continual in the long term.”
On the other hand, the spokesperson failed to say how many houses may fall outside the 1 in 65 danger band and be classed as not impregnable against floods, saying only: “That is not for government to declare.”
He also said how important it was that the Environment Agency makes use of its new controls to thwart any new developments that may be at risk from flooding. He also said that life assurance companies were now set to provide better premiums to householders who take steps to make their properties resilientagainst the probability of swelling flood waters
He added: “What has changed is the climate change forecasts that the scientists are giving us - that the extreme weather conditions are going to worsen in the next 15 – 20 years.”That involves a long-term plan … It is something we have been deliberating with the insurers. They, quite rightly, want to have promises that properties are protected and we, quite understandably, want to do that regardless.”
A spokesperson of the Association of British Insurers said the deal would ensure flood protection continued to be widely available to householders.
“This deal is great news for everyone at risk of flooding,” he added. “We are happy that the government accepts that a long-term investment scheme, adequately funded, is the most proficient way to deal with the growing flood threat.”
The Association of British Insurers (AIB) had formerly cautioned that more than 550,000 houses could become uninsurable, unless more money is put into our flood fortifications.
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