Talks stall on Flood insurance

 

Have just received a weekly newsletter from Cannon Moorcroft Chartered Accountants of High Wycombe, Bucks. One of the stories that caught my attention was "Households at potential risk as flood insurance talks stall"

 

26 November 2012

Up to 200,000 households and small businesses could be left without flood protection insurance as talks with the Government reach a stalemate, the Association of British Insurers (ABI) has said.

The ABI wants the Government to reconsider its refusal to provide a temporary overdraft facility to ensure that households at high risk of flooding can afford cover when the current state-backed agreement comes to an end next year.

The temporary overdraft facility would be used to pay claims if there were a repeat of the 2007-style floods over the next couple of years, before insurers have had time to build up reserves.

The ABI is now asking for the Government to commit to a joint solution to ensure long term affordable flood insurance.

The warning comes as the Environment Agency (EA) says more than 500 properties have flooded across the UK since Wednesday due to the recent bad weather.

Nick Starling, Director of general insurance at the ABI said: "The severe floods experienced by many areas of the UK this year are a reminder of the rising flood risk facing the UK."

"It is therefore vital that insurers and Government tackle this issue together - this is not just a problem for insurers. No country in the world has a free market for flood insurance with high levels of affordable cover without some form of Government involvement."

Under the existing Statement of Principles between the Government and the insurance industry, insurers are obliged to offer flood cover as a policy standard in most instances. In return, the EA has pledged to continue improving flood defences.

The current agreement is due to expire on 30 June 2013.

Around 70,000 properties at risk of flooding have been sent warnings from the EA as heavy rain continues across the UK over the next few days.

The ABI is advising businesses and properties at risk of flooding to:

·         Check bad weather warnings on local radio and TV

·         Have emergency contact numbers including utility companies and insurers close to hand

·         Move valuable items to higher places if possible and to move cars away from expected flooding areas

·         Check what is covered by household or business insurance policies.

If you are concerned about being able to get insurance for your property then follow this link to insurance broker Neil Cooke of TR Youngs / Allstyles insurance brokers HERE