Ministerial Statement about flood insurance

On Wednesday Caroline Spelman made a ministerial statement about flood risk insurance, attached.  This indicates that Government is minded to continue with some form of levy system, or pool, but gives very little detail beyond that.  The National Flood Forum has produced a press release which welcomes the fact that there has been some progress, but reiterates that this matter is urgent and that we need to agree the detail as soon as possible.

We need to keep the pressure on both the Insurance industry and Government to conclude a deal that provides insurance to people that is affordable, that is accessible and which is socially just, i.e. it must protect those who are most vulnerable.  Many of you have written to your MPs in these terms; we would encourage you to do so once again in order to ensure that MPs are under no illusion about the significance of this issue for voters.

Please contact me if you would like to discuss this matter.

Kind regards

Paul Cobbing

Chief Executive

National Flood Forum

Old Snuff Mill Warehouse
Park Lane
Bewdley
Worcestershire
DY12 2EL
www.floodforum.org.uk

The Times – 13 February 2010

“Ordeal of flood victims who are trapped in ‘uninsurable’ homes”

Homeowners complain of huge excess charges, payout delays and bogus officials

Victims of the floods that devastated homes in northern England late last year are facing excess charges of up to £50,000 when they renew their insurance, an investigation by Times Money has found.

Three months on from the flooding some homeowners also complain of delays in settling claims, with hundreds still living in temporary accommodation. Despite a pledge by the insurance industry, some residents say that they are being refused cover outright.

The Association of British Insurers (ABI) has agreed with the Government to offer cover to existing customers at significant flood risk, provided that there are plans to reduce the risk within five years. In reality, however, this cover may come at an impossibly high price.
Read more at the Times Online