Summary:
The increased levels of flooding in the past ten years, have made numerous properties uninsurable. This article looks at the new plans the government has approved with insurers to allow more householders to purchase home insurance quotes . Nevertheless, there will be a number of people that still can’t aquire it.
Thousands of homeowners will still be able purchase essential insurance against flooding. It has been revealed that insurers have reached an agreement with the government after they committed to a long-standing flood protection contract.
Under the agreement, insurance companies have guaranteed to offer protection to any property deemed to have a riskof less than 1 in 55 from flooding.
Providing procedures are in position to reduce the danger to an acceptable level within the next 5 years, insurers will continue to make cover available to existing small business customers and domestic. The Environment Minister said that to attain these proposals the government has committed itself to a long term thirty five year strategy to improve flood dams.
The government intends to improve fortifications and urge householders to safeguard their homes would mean that an existing statement of principles granted by insurance companies could end in 2016.
This arrangement comes over a year after floods struck areas of The Midlands, Hull Gloucestershire. These floods resulted in 184,000,185,000 claims for flood-harmed homes, businesses and cars. Payouts from insurance companies came to an eye watering 3 billion pounds.
The spokesperson told BBC Radio 4 Events programme: “The insurers very logically said that it is necessary to have a long-term scheme – 25 years is the figure that we are going ahead with.
“We are exploring coastal flooding and surface water flooding as well as river flooding, to check that the increased investment that we have, is sustained in the long term.”
However, the spokesperson omitted to say how many homes may fall outside the one in 75 risk range and be classified as not defendable against floods, saying only: “That is not for government to state.”
He also said how necessary it was that the Environment Bureau makes use of its new influence to stop any new housing or industrial developments that may be in jeopardy from flooding. He also said that life assurance companies were now prepared to provide better premiums to homeowners who take action to make their homes resilientagainst the likelihood of rising flood waters
He added: “What has transformed is the climate change forecasts that the scientists are giving us – that the severe weather conditions are going to increase in the next 15 – 20 years.”That entails a long-term strategy … It is something we have been negotiating with the insurance companies. They, quite justifiably, want to have assurances that homes are safeguarded and we, quite understandably, want to do that anyhow.”
A Director of the Association of British Insurers (ABI) said the agreement would make sure flood defence continued to be widely accessible to homeowners.
“This agreement is excellent news for everybody in danger of flooding,” he added. “We are delighted that the government appreciates that a long-term investment strategy, effectively funded, is the most successful way to manage the growing flood threat.”
The ABI had formerly counselled that more than 500,000 properties could turn out to be uninsurable, unless more money is put into our flood fortifications.
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