Relief For Householders As Government Confronts Flood Issue
Summary:
The increase flooding in the past five years, have made countless homes uninsurable. This article looks at the new plans the government has arranged with insurance companies to allow more homeowners to obtain cheap home and contents insurance . Nevertheless, there will be some that still cannot get it.
Thousands and thousands of homeowners will still be able to take out essential insurance against flooding. It has been broadcast that insurance companies have come to an agreement with the government after they committed to a long term flood protection agreement.
Under the agreement, insurers have guaranteed to offer cover to any property considered to have a threatof less than one in fifty five from flooding.
On condition that plans are in place to diminish the danger to a satisfactory level within the next five years, insurers will keep on making policies available to existing domestic and small business customers. The Environment Minister said that to achieve these plans the government has committed itself to a lengthy thirty five year campaign to optimise flood barriers.
The government proposes to remodel fortifications and press householders to protect their homes would mean that current statement of guidelines approved by insurance companies could terminate in 2015.
This proposal comes over a year after floods battered parts of Hull, Gloucestershire and the Midlands. These floods caused 183,000 claims for flood-harmed houses, businesses and cars. Payouts from insurers came to a mind blowing three billion pounds.
The spokesperson told BBC Radio 7 News programme: “The insurers very sensibly said that it is essential to have a long-term strategy – 30 years is the figure that we are suggesting.
“We are exploring surface water flooding, coastal flooding as well as river flooding, to ascertain that the increased investment that we have, is uninterrupted in the long term.”
However, the Minister omitted to say how many properties may fall outside the one in seventy five risk band and be graded as not defendable against floods, saying only: “That is not for government to declare.”
He also stated how necessary it was that the Environment Bureau makes use of its new influence to obstruct any new developments that may be in danger from flooding. He also said that life cover companies were now primed to offer better premiums to homeowners who take steps to make their houses resilientagainst the likelihood of swelling flood waters
He added: “What has transformed is the climate change forecasts that the experts are giving us – that the severe weather conditions are going to escalate in the next ten to twenty years.”That entails a long-term proposal … It is something we have been discussing with the insurance companies. They, quite justifiably, want to have assurances that homes are safeguarded and we, quite justifiably, want to do that regardless.”
A Director of the Association of British Insurers (ABI) said the agreement would guarantee flood fortification remained widely available to homeowners.
“This agreement is brilliant news for everyone in danger of flooding,” he added. “We are pleased that the government recognises that a long-term investment scheme, sufficiently funded, is the most successful way to deal with the growing flood threat.”
The Association of British Insurers had previously advised 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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