Flood insurance deal is being washed further and further away
If the Government don’t strike a deal with the Association of British Insurers by next summer, over 200,000 flood hit homes could be left without insurance. The existing deal which is set to expire in June 2013 currently provides affordable cover for homes at risk of flooding but negotiations which have taken place over the past two years have not been successful and a compromise has not yet been found.
After the £1 billion damage cause by extensive flooding in 2000, the Labour Government struck a deal with the insurance industry where by cover will be available for homes in flood risk areas as long as the Government continue to strengthen flood deference’s. The Association of British Insurers latest favoured deal is to formalise a ‘cross subsidy’ where there will be a new compulsory levy on all home insurance policies which will raise money to cover the cost of the claims made by flood risk home owners. The levy would stand at around £8 on every home insurance policy meaning the country would raise £250 million pounds a year for a flood damage fund which would be non profit making.
However, the Association of British Insurers also want ministers to pay for an ‘over draft’ facility in the case of a severe wide spread flood such as those experienced this year, where the costs exceed the amount of money raised in the central pot during the first five years of the fund. The Government have rejected this proposal but offered no alternative solution according to the Association of British Insurers.
Do you want to know if you live in a flood risk area to see if your home insurance will become invalid after June 2013? You can purchase a GroundSure Flood Report from Pali which includes a wide range of data that considers many types of flood risk in addition to an opinion on the likely availability of insurance based upon data utilised extensively by the Association of British Insurers. The GroundSure Flood report from Pali covers the Environment Agency tidal and river flooding, areas benefiting from flood defence, pluvial flood risk, likely availability of insurance for flood risk homes and British Geological Survey of groundwater flood risk.
Alternatively, you can order a GroundSure Homebuyers report from Pali which is the only combined residential environmental and flood risk search available on the market. GroundSure Homebuyers contains the same high quality information and expert information the GroundSure Flood report does with a new feature of Historic Flood Data provided by the Environment Agency which dates back to the 1840’s. This additional data is compulsory information for many insurers when assessing insurability. GroundSure Homebuyers contains the added benefit of historic information about contaminated Land under Park IIA of the Environmental Protection Act 1990.
If you’re interested in purchasing a GroundSure Flood report or a Groundsure Homebuyers report from Pali or would like more information, please call 0151 691 1170 or email email@example.com and we will be happy to assist you.(0) Comments
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