Government Agreement With Insurers For Flood Risk Housing
Summary:
The increase flooding in the last few years, have made many homes uninsurable. This article looks at the new plans the government has arranged with insurers to permit more homeowners to get home insurance. Nevertheless, there will be a number of people that still cannot get it.
Thousands of homeowners will still be able to take out essential insurance against flooding. It has been announced that insurance companies have arrived at a deal with the government after they committed to a long-standing flood protection contract.
Under the deal, insurance companies have guaranteed to supply protection to all properties judged to have a threatof less than one in fifty five from flooding.
On condition that policies are in position to reduce the danger to a satisfactory level within the next six years, insurance companies will keep on making insurance available to existing small business customers and domestic. The Environment Minister said that to realise these proposals the government has committed itself to a long term 35 year strategy to optimise flood defences.
The government proposes to develop defences and press homeowners to protect their properties would mean that an existing statement of principles agreed by insurance companies could conclude in 2015.
This arrangement comes over a year after floods damaged areas of The Midlands, Hull Gloucestershire. These floods produced 181,000 claims for flood-soaked houses, businesses and cars. Settlements from insurance companies came to a mind blowing 2 billion pounds.
The spokesperson told BBC Radio 3 Today programme: “The insurers very sensibly said that it is necessary to have a long-term strategy – 25 years is the figure that we are suggesting.
“We are exploring coastal flooding and surface water flooding as well as river flooding, to ensure that the increased investment that we have, is maintained in the long term.”
Then again, the spokesperson omitted to say how many properties may fall outside the 1 in 65 danger range and be graded as not impregnable against floods, saying only: “That is not for government to say publicly.”
He also stated how imperative it was that the Environment Bureau makes use of its new rules to obstruct any new developments that may be at risk from flooding. He also said that life cover companies were now prepared to provide better premiums to homeowners who take steps to make their properties resilientagainst the probability of swelling 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 intensify in the next 10 – 20 years.”That entails a long-term strategy … It is something we have been negotiating with the insurers. They, quite rightly, want to have promises that houses are safeguarded and we, quite understandably, want to do that in any case.”
The Chairman of the Association of British Insurers said the agreement would make sure flood reinforcement continued to be extensively accessible to property owners.
“This agreement is brilliant news for everybody in peril of flooding,” he added. “We are happy that the government recognises that a long-term investment proposal, properly funded, is the most successful way to manage the increasing flood threat.”
The Association of British Insurers (AIB) had previously advised that more than 450,000 homes might become uninsurable, unless the government invested more in our flood defences.
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