Summary: The rise in flooding in the last few years, have made countless properties uninsurable. This article looks at the new plans the government has agreed with insurers to enable more householders to purchase cheap home and contents insurance . However, there will be some that still can’t aquire it. Thousands and thousands of homeowners [...]
Summary:
The rise in flooding in the last few years, have made countless properties uninsurable. This article looks at the new plans the government has agreed with insurers to enable more householders to purchase cheap home and contents insurance . However, there will be some that still can’t aquire it.
Thousands and thousands of homeowners will still be able purchase essential insurance against flooding. It has been publicised that insurance companies have achieved an agreement with the government after they committed to a long-standing flood protection contract.
Under the contract, insurance companies have guaranteed to offer cover to all properties considered to have a riskof less than 1 in 55 from flooding.
Providing proposals are in place to reduce the risk to a satisfactory level within the next six years, insurers will continue to make insurance accessible to existing domestic and small business customers. The Environment Spokesperson said that to achieve these plans the government has consigned itself to a lengthy 25 year strategy to develop flood defences.
The government intends to improve defences and press homeowners to protect their properties would mean that an existing statement of policy granted by insurance companies could finish in 2014.
This deal comes over a year after floods damaged areas of Gloucestershire, Hull and the Midlands. These floods resulted in 183,000 claims for flood-soaked homes, businesses and cars. Settlements from insurers came to a stunning two billion pounds.
The spokesperson told BBC World Service Daily programme: “The insurers very sensibly said that it is crucial to have a long-standing plan – 25 years is the figure that we are suggesting.
“We are investigating coastal flooding and surface water flooding as well as river flooding, to ascertain that the enlarged investment that we have, is uninterrupted in the long term.”
On the other hand, the spokesperson omitted to say how many houses may fall outside the 1 in 75 risk band and be classified as not impregnable against floods, saying only: “That is not for government to announce.”
He also stated how essential it was that the Environment Bureau makes use of its new rules to block any new housing or industrial developments that may be in danger from flooding. He also said that life assurance companies were now prepared to offer better premiums to householders who take action to make their properties durableagainst the likelihood of rising flood waters
He added: “What has changed is the climate change predictions that the experts are giving us – that the extreme weather conditions are going to intensify in the next 10 – 20 years.”That entails a long-term proposal … It is something we have been negotiating with the insurers. They, quite pausibly, want to have pledges that houses are safeguarded and we, quite understandably, want to do that in any event.”
A spokesperson of the Association of British Insurers (ABI) said the deal would make certain flood protection stayed extensively accessible to householders.
“This deal is tremendous news for everyone in jeopardy of flooding,” he added. “We are happy that the government recognises that a long-term investment scheme, effectively funded, is the best way to manage the growing flood threat.”
The ABI had formerly warned that more than 500,000 homes may turn out to be uninsurable, unless the government invests more money in our flood barriers.
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