Government Agreement Ray Of Sunshine For Flood Homes October 28, 2009
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The increase flooding in recent years, have made many homes uninsurable. This article looks at the new proposals the government has arranged with insurers to permit more homeowners to obtain contents insurance . However, there will be some that still cannot get it.
Thousands of homeowners will still be able to take out essential insurance against flooding. It has been that insurance companies have come to an agreement with the government after they committed to a long term flood protection contract.
Under the arrangement, insurance companies have guaranteed to offer cover to all properties deemed to have a threatof less than 1 in 75 from flooding.
Providing procedures are in position to reduce the threat to an adequate level within the coming 4 years, insurance companies will continue to make insurance accessible to existing domestic and small business customers. The Environment Minister said that to realise these proposals the government has committed itself to a lengthy thirty five year strategy to develop flood barriers.
The government intends to remodel fortifications and press homeowners to safeguard their properties would mean that an existing statement of principles approved by insurers could conclude in 2015.
This arrangement comes over a year after floods hit areas of Hull, Gloucestershire and the Midlands. These floods resulted in 183,000 claims for flood-ruined businesses, cars and houses. Settlements from insurers came to an extortionate six billion pounds.
The Minister told BBC Radio 2 Daily programme: “The insurance companies very reasonably said that it is necessary to have a long-term strategy – twenty five years is the figure that we are proposing.
“We are exploring coastal flooding and surface water flooding as well as river flooding, to ascertain that the increased investment that we have, is uninterrupted in the long term.”
Conversely, the Minister failed to say how many houses may fall outside the one in sixty five danger bracket and be graded as not defendable against floods, saying just: “That is not for government to announce.”
He also said how important it was that the Environment Bureau makes use of its new influence to obstruct any new industrial or housing developments that may be in jeopardy from flooding. He also said that life assurance companies were now set to offer better premiums to homeowners who do something to make their properties resistantagainst the prospect of swelling flood waters
He added: “What has altered is the climate change predictions that the experts are giving us - that the extreme weather conditions are going to increase in the next ten to twenty years.”That needs a long-term strategy … It is something we have been negotiating with the insurance market. They, quite rightly, want to have promises that houses are protected and we, quite justifiably, want to do that whatever happens.”
The Chairman of the Association of British Insurers said the deal would ensure flood reinforcement stayed extensively accessible to property owners.
“This agreement is tremendous news for everyone in jeopardy of flooding,” he added. “We are elated that the government appreciates that a long-term investment plan, properly funded, is the easiest way to manage the increasing flood threat.”
The Association of British Insurers had formerly counselled that more than 550,000 homes may turn out to be uninsurable, unless the government invested more in our flood defences.
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