Insurance Online

Thousands of homeowners can still take out home insurance against flooding. Under an agreement with the Government, insurers will guarantee to insure any property thought to have a risk of flooding of less than 1 in 75.

Domestic and individual business customers who are at major risk of flooding will still be able to have access to their existing cover. But this can only be done, if there are plans in place to reduce the risk to a satisfactory point within the next five years.

The Government has achieved this by entering a twenty five year strategy, in order to develop its flood defences. It plans to increase its defences and encourage people to safeguard their own properties. However the present statement of principles, agreed between the Government and insurers could unwind in the year twenty thirteen, if flood defenses are not improved.

The deal comes a year after floods hit areas of Gloucestershire, the Midlands and Hull. Payouts of three billion pounds were made for flood damage to businesses, cars, and homes, from a resounding one hundred and eighty thousand claims.

It was said on Radio Four that the insurance industries were going ahead with the twenty five year policy which is essential, and practical. They also said in order for this to be sustained in the future, river flooding, surface flooding and coastal flooding would be reviewed to ensure that the investment was budgeted correctly. It was also said that investment levels in the flood defense program have been improved.

The Commentator refused to say how many homes would fall outside the 1-in-75 risk bracket. Therefore these properties would not be protected by floods; one thing the Commentator did state was that this was not up to the government to say what would or would not, be insured.

He said that insurers were now prepared to offer better premiums to homeowners who strive to make their properties defendable against flood water. He also said that it was essential that any developments that are at risk of flooding should be opposed. He added that scientists are predicting that the extreme weather conditions are going increase and therefore so is the risk of flooding.

The insurance industry justifiably wants assurances that homes will be protected in all cases and the public understandably wants these assurances too. This therefore, requires a long term strategy.

A Director of the Association of British Insurance, proclaimed that the agreement guarantees flood protection would be widely accessible to all householders. He also said that “this was good news for people living in areas prone to flooding. We are happy that the government finally recognises that an adequately funded, long standing investment strategy is a significant way to manage the growing floods”. Unless the government invests more in flood areas, it is thought that more than 500,000 homes could become uninsurable, warns the association.

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