Agreement on flood insurance is good news for customers
Millions of householders and businesses will continue to receive long term flood cover after an agreement was reached between insurers and the Government.
Defra and Treasury ministers met with the Association of British Insurers (ABI) yesterday to finalise a deal which will ensure flood insurance remains widely available for homes and small businesses.
Floods Minister, Phil Woolas, said:
“The devastation caused by last year’s unprecedented rainfall has shown just how vital it is for people to be able to insure their homes and livelihoods against the risk of flooding.
“Working together we have succeeded in ensuring that flood cover is available in both the short and long term. I’m delighted that the industry has agreed to work with us to raise awareness and encourage homeowners to take steps to protect their homes where appropriate.”
Insurers will include flood cover as standard in insurance policies for homes and small businesses if the flood risk is not significant, and continue to provide cover for existing customers at significant flood risk, providing there are plans to reduce the risk to an acceptable level within five years.
The agreement outlines the actions that both Government and the industry will take over the long term. These include:
- Improving understanding of flood risk by looking at the likelihood and consequences of flooding from all sources, including surface water.
- Government putting in place a long-term investment strategy, which will set out strategic flood prevention aims and assess future policy options and funding needs
- Ensuring that the planning system prevents inappropriate development in flood- risk areas.
- Raising awareness in areas where flood risks are significant, encouraging property owners to take sensible precautions, and providing more information about how to obtain flood insurance.
- Promoting access to home insurance for low-income households.
Further information
- News release
- Details of the full agreement between the ABI and the Government
- Joint statement between the ABI and the Government
- More information about insurance
- More information about ABI
Page published: 11 July 2008