« What You Know About Credit Card Consolidation Loans | Home | Evolving Bifocal Glasses to Keep Up With Contacts »
Flood Issues Government And Insurers Reach Agreement
By Dog Lover | October 27, 2009
Summary:
The rise in flooding in the past ten years, have made numerous properties uninsurable. This article looks at the new proposals the government has arranged with insurance companies to enable more homeowners to attain cheap home and contents insurance . On the other hand, there will be a number of people that still cannot get it.
Thousands and thousands of homeowners will still be able buy essential insurance against flooding. It has been revealed that insurers have achieved a deal with the government after they committed to a long-standing flood protection agreement.
Under the arrangement, insurers have guaranteed to afford protection to any property considered to have a threatof less than one in sixty five from flooding.
On condition that policies are in place to diminish the risk to an adequate level within the coming four years, insurance companies will continue to make cover available to existing domestic and small business customers. The Environment Minister said that to achieve these strategies the government has consigned itself to a long term 30 year strategy to improve flood defences.
The government aims to develop fortifications and appeal to homeowners to protect their homes would mean that current statement of policy granted by insurance companies could terminate in 2012.
This arrangement comes over a year after floods battered parts of The Midlands, Hull Gloucestershire. These floods produced 181,000 claims for flood-damaged businesses, cars and houses. Settlements from insurance companies came to a shocking five billion pounds.
The spokesperson told BBC Radio 4 News programme: “The insurers very sensibly said that it is essential to have a long-term strategy – 25 years is the figure that we are going ahead with.
“We are looking at coastal flooding and surface water flooding as well as river flooding, to check that the amplified investment that we have, is uninterrupted in the long term.”
However, the spokesperson failed to say how many houses may fall outside the 1 in 65 danger bracket and be graded as not impregnable against floods, saying just: “That is not for government to say publicly.”
He also said how imperative it was that the Environment Bureau makes use of its new controls to prevent any new industrial or housing developments that may be at risk from flooding. He also said that life assurance companies were now set to provide better premiums to homeowners who do something to make their properties enduringagainst the likelihood of swelling flood waters
He added: “What has changed is the climate change predictions that the experts are giving us – that the extreme weather conditions are going to intensify in the next 15 – 20 years.”That requires a long-term plan … It is something we have been negotiating with the insurance market. They, quite justifiably, want to have assurances that properties are safeguarded and we, quite justifiably, want to do that whatever happens.”
A Director of the Association of British Insurers said the agreement would make sure flood defence continued to be extensively available to homeowners.
“This agreement is brilliant news for everyone in peril of flooding,” he added. “We are pleased that the government appreciates that a long-term investment plan, properly funded, is the easiest way to handle the growing flood danger.”
The ABI had previously cautioned that more than half a million homes may become 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 cover.
Mail this post
Topics: General Interest | No Comments »