Government Tackles Flood Issue

Summary:
The increased levels of flooding in the past five years, have made lots of houses uninsurable. This article looks at the new plans the government has agreed with insurance companies to enable  more householders to attain home and contents. However, there will be a number of people that still cannot aquire it.

Thousands and thousands of homeowners will still be able buy essential insurance against flooding. It has been broadcast that insurers have reached a deal with the government after they consigned to a long-standing flood protection agreement. 

Under the accord, insurance companies have guaranteed to offer cover to any property considered to have a threatof less than one in 75 from flooding.

As long as procedures are in place to reduce the threat to a tolerable level within the next five years, insurers will keep on making insurance available to existing domestic and small business customers. The Environment Spokesperson said that to achieve these proposals the government has committed itself to a long term thirty five year strategy to improve flood dams.
The government intends to improve fortifications and press householders to safeguard their homes would mean that an existing statement of principles agreed by insurers could conclude in 2014.

This deal comes over a year after floods hit parts of Gloucestershire, Hull and the Midlands. These floods caused 183,000 claims for flood-damaged homes, businesses and cars. Payouts from insurance companies came to anexorbitant six billion pounds.
The spokesperson told BBC Radio 2 Today programme: “The insurance companies very reasonably said that it is important to have a long-term strategy – twenty five years is the figure that we are suggesting.

“We are investigating coastal flooding and surface water flooding as well as river flooding, to check that the enlarged investment that we have, is perpetual in the long term.”

On the other hand, the spokesperson failed to say how many homes may fall outside the 1 in 65 risk group and be classed as not impregnable against floods, saying only: “That is not for government to announce.”

He also stated how necessary it was that the Environment Agency makes use of its new controls to stop any new housing or industrial developments that may be in jeopardy from flooding. He also said that life assurance companies  were now geared up to offer better premiums to householders who take action to make their houses resistantagainst the likelihood of rising flood waters
He added: “What has altered is the climate change predictions that the scientists are giving us - that the severe weather conditions are going to mushroom in the next 15 – 20 years.”That necessitate a long-term approach … It is something we have been discussing with the insurance companies. They, quite pausibly, want to have confidence that houses are safeguarded and we, quite justifiably, want to do that whatever happens.”

A spokesperson of the Association of British Insurers (ABI) said the deal would ensure flood defence continued to be extensively available to homeowners.
“This deal is superb news for everyone at risk of flooding,” he added. “We are pleased that the government recognises that a long-term investment proposal, properly funded, is the most proficient way to handle the increasing flood danger.”

The Association of British Insurers had previously warned that more than 450,000 properties could turn out to be 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 insurance .

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