Concerns Over Flood Insurance

A news article is being run on the BBC website and the news bulletins this morning about the worries over flood insurance for vulnerable areas.

Tens of thousands of people who were flooded in 2007 may find it impossible to get cover for their homes and businesses unless the government and insurers reach a new agreement.

Campaigners say the government needs to act quickly as guarantees on vulnerable homes are due to end in June 2013.

The Association of British Insurers argues the agreement was a temporary measure and has distorted the market.

It wants the government to offer more help.

To put it simply, the insurance industry committed to keep flood insurance affordable for at risk communities so long as the Scottish and UK government, local authorities and agencies make progress on flood protection and prevention. The real concern is not enough or slow progress is being made for the insurance industry to recommit to such arrangements in the future.

A spokesman for the Association of British Insurers, speaking on BBC Breakfast, confirmed more commitment from government was required and hinted at the need for a government  subsidy so at risk communities can be provided with affordable flood coverage.

The ABI and the Scottish Government compiled “A Joint Statement on the Provision of Flood Insurance” back in December 2008.

Freuchie, Falkland and the Newton of Falkland have all been recognised by SEPA as areas at risk of flooding.

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