Summary:
The rise in flooding in recent years, have made countless houses uninsurable. This article looks at the new proposals the government has approved with insurance companies to permit more homeowners to get cheap home and contents insurance . However, there will be some that still can’t get it.
Millions of homeowners will still be able to take out essential insurance against flooding. It has been revealed that insurance companies have achieved a deal with the government after they committed to a long-standing flood protection contract.
Under the deal, insurers have guaranteed to offer cover to any property considered to have a chanceof less than one in fifty five from flooding.
As long as procedures are in place to lessen the risk to an acceptable level within the next five years, insurance companies will carry on making policies accessible to existing domestic and small business customers. The Environment Spokesperson said that to realise these proposals the government has committed itself to a long term 20 year campaign to improve flood fortifications.
The government plans to improve defences and press homeowners to safeguard their homes would mean that an existing statement of principles approved by insurers could terminate in 2013.
This proposal comes over a year after floods struck parts of Gloucestershire, Hull and the Midlands. These floods resulted in 183,000 claims for flood-ruined homes, businesses and cars. Payouts from insurance companies came to a mind blowing 3 billion pounds.
The spokesperson told BBC Radio 2 Today programme: “The insurers very reasonably said that it is essential to have a long-standing plan – 25 years is the figure that we are proposing.
“We are looking at surface water flooding, coastal flooding as well as river flooding, to ensure that the increased investment that we have, is perpetual in the long term.”
On the other hand, the Minister failed to say how many homes may fall outside the one in fifty five risk band and be graded as not defendable against floods, saying only: “That isn’t for government to state.”
He also stated how imperative it was that the Environment Agency makes use of its new influence to obstruct any new developments that may be at risk from flooding. He also said that life insurance companies were now set to provide better premiums to householders who take steps to make their houses durableagainst the prospect of swelling 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 decade.”That necessitate a long-term approach … It is something we have been deliberating with the insurance industry. They, quite rightly, want to have confidence that homes are safeguarded and we, quite understandably, want to do that in any event.”
A spokesperson of the Association of British Insurers said the deal would guarantee flood protection remained widely available to householders.
“This deal is great news for everybody in peril of flooding,” he added. “We are happy that the government acknowledges that a long-term investment strategy, sufficiently funded, is the best way to deal with the growing flood threat.”
The ABI had formerly warned that more than 450,000 houses could turn out to be uninsurable, unless more money is put into our flood fortifications.
Brokers Online is a specialist uk finance website offering its clients access to many insurance products from home insurance to health insurance .
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