First of all: Please see the following BBC News Interview with Neil Cook Flooded properties - November 2009 http://www.youtube.com/watch?v=xEgBpYs_RU4 about their previous promise
IN TOTAL CONCLUSION - IF YOU LIVE IN AN AREA THAT HAS BEEN FLOODED OR A RISK OF FLOODING THE ASSOCATION OF BRITISH INSURERS WILL LIE CHEAT AND CON YOU. Any use the new flood mapping to justify this
THE ENVIRONMENT AGENCY ESTIMATES THAT THERE ARE 5.2M HOMES AND BUSINESSES IN THE UK THAT ARE AT RISK OF FLOODING THAT’S 1 IN 6
THAT FIGURE WILL INCREASE BY AT LEAST 10% BY 2013
BY 2013 THE ABI AGREEMENT WILL CEASE TO EXIST
The following comments were observed through the course of the event
The current statement of principles for flood victims expires in 2013 although the current version that in short, promises the following is not in fact fit for purpose and holds very little water.
1 Anyone who suffered a flood claim will be offered renewal
2 The premium offered will affordable and the excess sensible
3 If the property is sold the policy will transfer to the new buyer at same terms
Any insurer that is deemed to be a new entrant is excluded any so a major ABI insurer will often use several brand names such being the insurance provider for supermarket type chain or OAP organisation. This in fact to their advantage not yours!
So this will be reworked ! ?! YES BUT ONLY IN FAVOUR OF ABI INSURERS
Proposed methods of help
THE GREEN DEAL home owners with be rewarded if they fit flood defence, sadly most insurers wont give a dam!
During the meeting headed “sharing flood risk” a representative of one of the largest insurers in the world praised the UK method of offering flood insurance as part of the policy and commented that “the principle of insurance that everyone pays into the common insurance pot so that gets paid out from” that is the way insurance works the ABI disputed it!
The ABI muted that those who flooded or are in high flood risks areas will have to buy flood cover as a separate policy typically you will pay £1000 or much more extra to be protected against flood, flood victims and those in very high risk areas could be charged many thousands of pounds with flood excesses in excess of £10000
Home owners will be expected to fit flood defences to their property but will not be rewarded for doing in so. PLEASE beware of inflated prices for flood defences and discounted flood defences after various flood grants a typical flood gate for a door cost s around £250 so don’t be fooled into paying any more and don’t be fooled into buying too equipment the cost to defend a typical property should be no more than £1000
It was stated that in 2007 there were 180,000 properties flooded alone no that figures is now double that of course that includes property in the UK and Northern Ireland
Various flood groups etc fought these proposals but were ignored! They also commented that the UK economy is supported by property value without flood cover whole areas of the country will become ghost towns as those properties become worthless as without affordable flood cover they cannot sell
No reply was given
The point was raised that the under the agreement, cover should transfer to future buyers But does not no comment was given
In Keswick at least 1 in 12 property owners are refused insurance in Morpeth the figure is 1 in 10 that will increase around 5 fold within 2-3 years
Lets hope and pray that when the recent snow there are no more floods
Source Neil Cook Insurance Broker
See also: UK flood damage costs up 200%