Government Agreement Ray Of Sunshine For Flood Homes
Summary:
The rise in flooding in the last few years, have made lots of homes uninsurable. This article looks at the new plans the government has approved with insurance companies to enable more householders to purchase home insurance. On the other hand, there will be a number of people that still can’t get it.
Thousands of homeowners will still be able purchase invaluable insurance against flooding. It has been announced that insurers have come to a deal with the government after they committed to a continuing flood protection deal.
Under the arrangement, insurance companies have guaranteed to provide cover to all properties deemed to have a threatof less than 1 in 55 from flooding.
Providing policies are in position to diminish the threat to a tolerable level within the coming 6 years, insurance companies will continue to make policies available to existing small businesses and domestic. The Environment Spokesperson said that to realise these proposals the government has committed itself to a lengthy thirty year strategy to improve flood defences.
The government aims to develop defences and press homeowners to protect their properties would mean that an existing statement of principles approved by insurers could terminate in 2015.
This deal comes over a year after floods hit areas of Hull, Gloucestershire and the Midlands. These floods resulted in 182,000 claims for flood-harmed homes, businesses and cars. Payouts from insurers came to a mind blowing two billion pounds.
The spokesperson told BBC World Service News programme: “The insurers very logically said that it is important to have a long-standing plan – twenty five 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 increased investment that we have, is maintained in the long term.”
Then again, the spokesperson failed to say how many homes may fall outside the one in seventy five risk band and be classified as not impregnable against floods, saying only: “That isn’t for government to say publicly.”
He also stated how necessary it was that the Environment Bureau makes use of its new powers to stop any new industrial or housing developments that may be at risk from flooding. He also said that life cover companies were now set to provide better premiums to householders who do something to make their properties resilientagainst the probability of rising flood waters
He added: “What has changed is the climate change forecasts that the experts are giving us – that the severe weather conditions are going to intensify in the next decade.”That needs a long-term approach … It is something we have been discussing with the insurance companies. They, quite understandably, want to have guarantees that houses are safeguarded and we, quite understandably, want to do that whatever happens.”
A Director of the Association of British Insurers (ABI) said the agreement would guarantee flood defence continued to be extensively accessible to householders.
“This agreement is terrific news for everybody in jeopardy of flooding,” he added. “We are happy that the government accepts that a long-term investment proposal, effectively funded, is the best way to manage the growing flood threat.”
The Association of British Insurers had formerly warned that more than 550,000 houses could become uninsurable, unless the government invested more in our flood defences.
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This entry was posted on Thursday, October 29th, 2009 at 4:04 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.