Archive for August, 2013

Taken at the Flood?

The threat of floods is never far away and with the previous agreement, known as Statement of Principles, reached in 2000 between the Government and the Association of British Insurers (ABI) due to run out at end of July 2013, many people faced a future of prohibitive insurance premiums or worse, no insurance and consequentially no mortgage lending at all.

The news release published 27 June 2013 by the Department for Environment, Food and Rural Affairs (DEFRA) announcing a new deal between the Government and the ABI, “Flood Re”, will come as a tremendous relief to many householders:  in England alone, some 5 million properties are at risk of flooding.

Flood Re caps flood insurance premiums linking them to council tax bands.  Funded by a new industry backed levy from all UK household insurers, the deal is to be given legal backing through the Water Bill also published at the end of June.  Until it becomes an Act, the Government and insurers have agreed to remain bound by the Statement of Principles.

In addition to the provision of flood insurance for household premises, the Bill relates to the regulation of the water environment, licensing water abstraction, recording waterworks, supporting drainage boards and Regional Flood and Coastal Committees and many connected purposes.

Whilst welcomed by many, concerns about the insurance deal have been expressed by some representing the commercail property industry.  Flood Re relates to households leaving commercial property owners to reach a deal in the open market.  Read again about flood risk in Hatherleigh Training news letter published September 2010.