Summary:
The increased levels of flooding in the last few years, have made countless properties uninsurable. This article looks at the new proposals the government has arranged with insurers to allow  more householders to purchase home and contents insurance . However, there will be certain people that still can’t get it.

Thousands of homeowners will still be able to take out invaluable insurance against flooding. It has been stated that insurers have arrived at a deal with the government after they consigned to a continuing flood protection contract. 

Under the deal, insurers have guaranteed to provide protection to any property judged to have a probabilityof less than one in 75 from flooding.

As long as proposals are in position to reduce the risk to a satisfactory level within the next four years, insurers will continue to make cover available to existing small businesses and domestic. The Environment Minister said that to attain these plans the government has consigned itself to a long term twenty year strategy to optimise flood defences.
The government proposes to develop fortifications and implore homeowners to protect their homes would mean that current statement of guidelines agreed by insurance companies could terminate in 2014.

This deal comes over a year after floods hit areas of The Midlands, Hull Gloucestershire. These floods produced 184,000,185,000 claims for flood-soaked homes, businesses and cars. Settlements from insurers came to a stunning five billion pounds.
The Minister told BBC  Radio 7 Events programme: “The insurers very logically said that it is important to have a long-standing scheme – twenty six years is the figure that we are proposing.

“We are exploring surface water flooding, coastal flooding as well as river flooding, to ascertain that the amplified investment that we have, is uninterrupted in the long term.”

On the other hand, the Minister omitted to say how many houses may fall outside the 1 in 55 risk band and be classified as not impregnable against floods, saying only: “That is not for government to say publicly.”

He also stated how necessary it was that the Environment Agency makes use of its new controls to prevent any new housing or industrial developments that may be in danger from flooding. He also said that life cover companies were now ready to offer better premiums to householders who take action to make their homes durableagainst the possibility of swelling flood waters
He added: “What has changed is the climate change predictions that the scientists are giving us - that the extreme weather conditions are going to worsen in the next 10 – 20 years.”That requires a long-term policy … It is something we have been negotiating with the insurance companies. They, quite justifiably, want to have promises that homes are safeguarded and we, quite justifiably, want to do that regardless.”

The Chairman of the Association of British Insurers said the agreement would make sure flood reinforcement stayed widely available to householders.
“This agreement is terrific news for everyone in peril of flooding,” he added. “We are delighted that the government acknowledges that a long-term investment plan, effectively funded, is the easiest way to manage the growing flood threat.”

The Association of British Insurers had formerly cautioned that more than half a million homes might become uninsurable, unless the government invested more in our flood defences.

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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