Up to 200,000 homes in England and Wales will face insurance problems when a government agreement ends next year, the Association of British Insurers (ABI) has said.
It has mapped areas with the highest risk of flooding in England and Wales and where residents may struggle to get home insurance. Meanwhile a committee of MPs has raised concerns about what funding is available to maintain flood defences. It was unclear "where the buck stops" for managing the risk of flooding, a report by the Public Accounts Committee (PAC) stated. The ABI has repeated its warning that a pact ensuring cover for high-risk homes ends in June 2013. This obliges insurers to provide insurance for high flood risk properties while the government continues to improve flood defences.
The ABI wants the government to share the risk for the most vulnerable households, claiming that the current provision distorts the market. A spokesperson for the Department for Environment, Food and Rural Affairs (DEFRA), said: "We want flood insurance to remain widely available and are continuing to work with the insurance industry to ensure that this will be the case after the current agreement between government and insurers expires in 2013. As part of these discussions, over the next few months we will consider whether there are feasible, value for money ways of targeting funding support to those most in need. We will make further announcements in the spring."
The Public Accounts Committee urged the DEFRA, to secure a new agreement urgently. On the other side of the equation is flood defence. The PAC said that there was a great deal of uncertainty about whether there was enough money to improve flood defences and protection in the long-term, and who paid for it. The current bill is at least £1.1bn a year, according to the committee of MPs, and this is set to rise owing to climate change. A recent assessment for the government claimed that this could go up to between £1.5bn and £3.5bn a year by the 2020’s.
homeprotect remains committed to offering flood insurance to owners of properties at risk of flooding. Flood cover from homeprotect is underwritten by AXA Insurance.
Flood Risk Insurance information:
- homeprotect are proud supporters of Know Your Flood Risk, the campaign to help raise awareness of the issue of flooding and encourage practical guidance and support to help protect homeowners and property professionals against the risks.
- homeprotect have compiled The Definitive Guide to Flooding to help you know the risks and how to live with the immediate effects of a flood.