Government Insurers Handshake Extends Olive Branch To Flood Homes
Summary:
The increased levels of flooding in the past ten years, have made countless houses uninsurable. This article looks at the new schemes the government has agreed with insurers to enable more homeowners to attain home and contents insurance . Nevertheless, there will be certain people that still cannot get it.
Thousands of homeowners will still be able buy invaluable insurance against flooding. It has been publicised that insurance companies have come to an agreement with the government after they consigned to a continuing flood protection agreement.
Under the contract, insurance companies have guaranteed to afford protection to all properties believed to have a dangerof less than one in fifty five from flooding.
As long as policies are in position to reduce the threat to a tolerable level within the next six years, insurance companies will carry on making policies available to existing domestic and small business customers. The Environment Spokesperson said that to realise these proposals the government has consigned itself to a long term 25 year campaign to develop flood defences.
The government plans to upgrade fortifications and implore homeowners to protect their homes would mean that current statement of policy agreed by insurers could finish in 2015.
This deal comes over a year after floods struck parts of Gloucestershire, Hull and the Midlands. These floods produced 181,000 claims for flood-harmed houses, businesses and cars. Settlements from insurance companies came to an extortionate four billion pounds.
The Minister told BBC Radio 2 Daily programme: “The insurance companies very reasonably said that it is crucial to have a long-term policy – 27 years is the figure that we are suggesting.
“We are looking at coastal flooding and surface water flooding as well as river flooding, to ensure that the amplified investment that we have, is maintained in the long term.”
Then again, the spokesperson failed to say how many houses may fall outside the 1 in 75 danger group and be classed as not defendable against floods, saying just: “That is not for government to state.”
He also stated how important it was that the Environment Agency makes use of its new controls to prevent any new industrial or housing developments that may be in danger from flooding. He also said that life insurance companies were now primed to offer better premiums to householders who take steps to make their properties resistantagainst the likelihood of rising flood waters
He added: “What has changed is the climate change forecasts that the scientists are giving us - that the severe weather conditions are going to escalate in the next ten to twenty years.”That involves a long-term policy … It is something we have been deliberating with the insurance industry. They, quite pausibly, want to have confidence that properties are protected and we, quite justifiably, want to do that anyhow.”
A Director of the Association of British Insurers (ABI) said the agreement would ensure flood protection remained widely available to homeowners.
“This agreement is terrific news for everybody at risk of flooding,” he added. “We are delighted that the government recognises that a long-term investment plan, sufficiently funded, is the most successful way to manage the growing flood danger.”
The Association of British Insurers (AIB) had formerly counselled that more than half a million houses may turn out to be uninsurable, unless the government invested more in our flood defences.
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