New deal to insure flood-risk properties

11 July 2008

Insurers agree deal with government

A deal has been agreed between the insurance industry and the government under which millions of flood-risk homes will still be able to get flood cover.

The Association of British Insurers (ABI) had previously warned that its members would stop offering flood cover unless government ministers invested more funds into flood defences.

The insurance industry said that it would continue to offer flood damage protection to people in properties at moderate risk of flooding and only to existing customers living in an area at significant risk.

The deal will only hold if the government improves flood defences within the next five years.

Under the new plan of action, the government has assured that it will make a long-term investment strategy to improve flood defences.

It has also promised to ensure that properties are not unnecessarily built on flood-risk areas.

Justin Jacobs, from the ABI, said: “What we’ve agreed with the government is that if they can make sure as many people as possible are protected, we’ll be able to make sure we can offer affordable insurance to all our customers who want it.

“The pressure remains on the government because they must deliver those defences to people in order make sure we can offer affordable insurance,” he added.

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