Will Flood Insurance continue?

It is estimated that the cost of flood damage in 2012 will be £1bn.  “So what” you may ask, “That’s what insurance is for”.

Yes it is, but insurance is all about protecting against unforeseen events, not things that are likely to happen.  Insurers now have more and more data about the likelihood of flooding across the country and for some areas, it doesn’t look good.

But insurers aren’t all bad!  For the past few years, they have had an agreement with the government that they will continue to provide flood insurance, even in high risk areas, as long as the government continued to invest in flood prevention measures.   This agreement comes to an end in June 2013 and less is being spent by government!

So what’s the solution?

Insurers are trying to reach a new agreement with government. Part of this requires the government to fund a temporary overdraft facility to insurers which would cover any large losses in the next two years, until insurers build up a suitable “pot of money”.  This is where talks have broken down.

What can be done?

Pressure needs to be brought on the “powers that be” to get back round the table and hammer out an agreement.  Otherwise many homes and businesses may become uninsurable which would have a knock on effect on property values, particularly in the Worcestershire, Warwickshire and Gloucestershire areas.

You can help by contacting your MP and asking him or her to ask questions about what is being done to reach an agreement.