Government Agreement Ray Of Sunshine For Flood Homes
Summary:
The increased levels of flooding in recent years, have made lots of properties uninsurable. This article looks at the new plans the government has approved with insurers to allow more homeowners to purchase contents insurance . However, there will be some that still can’t aquire it.
Millions of homeowners will still be able buy invaluable insurance against flooding. It has been stated that insurance companies have come to an agreement with the government after they committed to a long term flood protection arrangement.
Under the deal, insurers have guaranteed to supply protection to any property judged to have a threatof less than 1 in 75 from flooding.
On condition that plans are in place to diminish the risk to an acceptable level within the next four years, insurance companies will carry on making cover available to existing domestic and small business customers. The Environment Minister said that to achieve these proposals the government has consigned itself to a lengthy 25 year campaign to improve flood barriers.
The government aims to remodel fortifications and urge homeowners to protect their homes would mean that an existing statement of principles granted by insurers could end in 2013.
This arrangement comes over a year after floods battered areas of Hull, Gloucestershire and the Midlands. These floods caused 182,000 claims for flood-harmed houses, businesses and cars. Payouts from insurers came to a shocking two billion pounds.
The spokesperson told BBC Radio 4 Daily programme: “The insurance companies very pausibly said that it is crucial to have a long-term strategy – twenty seven years is the figure that we are going ahead with.
“We are looking at surface water flooding, coastal flooding as well as river flooding, to check that the enlarged investment that we have, is sustained in the long term.”
However, the Minister failed to say how many properties may fall outside the 1 in 65 risk group and be graded as not defendable against floods, saying only: “That is not for government to declare.”
He also said how important it was that the Environment Bureau makes use of its new rules to stop any new industrial or housing developments that may be in danger from flooding. He also said that life insurance companies were now primed to provide better premiums to homeowners who take action to make their properties durableagainst the chance of rising flood waters
He added: “What has changed is the climate change forecasts that the experts are giving us – that the extreme weather conditions are going to mushroom in the next 10 – 20 years.”That entails a long-term policy … It is something we have been negotiating with the insurers. They, quite understandably, want to have confidence that properties are protected and we, quite understandably, want to do that in any event.”
The Chairman of the Association of British Insurers said the deal would guarantee flood fortification continued to be widely available to property owners.
“This agreement is great news for everybody in danger of flooding,” he added. “We are happy that the government acknowledges that a long-term investment proposal, sufficiently funded, is the best way to handle the growing flood threat.”
The Association of British Insurers had previously advised that more than 450,000 houses could become uninsurable, unless more money is put into our flood fortifications.
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