Has the Spending Review created a Flood of Problems? 25/11/10

previous

<< Subscribe to our news feed here

next

The Chancellor, George Osborne, announced in the latest spending review that spending next year on flood defences would be cut to £2bn over four years, as opposed to the last review where spending was set to £2.15bn over a shorter three year period.

According to the Parliaments website, the floods of 2007 were the biggest peacetime emergency we have had to deal with since WWII, and cost the insurance industry £3 billion.

Fortunately, following these floods an agreement was struck up between the Government and the Association of British Insurers (ABI) to ensure that flood insurance remains widely available. This agreement is to remain in place until June 2013.

In the agreement members of the ABI have committed to continue to make flood insurance for domestic properties and small businesses available, providing the Environment Agency has announced plans and notified the ABI of its intention to reduce the risk for those customers at risk from flooding.

Despite the agreement, the British Insurance Brokers’ Association (BIBA) believes there are properties that will be excluded and the owners will need specialist advice from an insurance broker.

If nothing is done and a property cannot be insured, then it less likely to be mortgaged, making it very difficult to buy or sell, and causing huge financial difficulty if the property suffers a loss.

Andrew Price at Coversure Insurance Services said, “This agreement comes to an end in 2013; there is a real need for the Government and Insurance Industry to agree a long-term plan to combat the increased risk of flooding over the next few years.” Price went on to say, “Even if your property is insured against flood damage, if you live in an area that is prone to flooding, it is a good idea to create your own plan of action, should a flood occur. Your plan should take into consideration actions to take before, during and after a flood has occurred and everyone in the household should be familiar with it.”

You can find details on what steps to take, if you are prone to flooding in your area, on the Directgov website in the section on “Preparing for a flood”.

Contact:
Matt Withers
Marketing Manager
Tel: 01482 43 43 43
Email:webmaster@qgetaquoteinsurance.co.uk

Note to editors:
Coversure Insurance Services is the largest and longest running general insurance franchise operation in the UK intermediary market. Established by local insurance expert Mark Coverdale in Huntingdon in 1986 the group now controls premiums over £60m with branch offices at 90 locations throughout the UK.

Coversure Hull offer all general insurances including Motor, Property and Business cover. They also have a number of specialist schemes for Public & Employers Liability, Taxi Insurance, Property Owners and Professional Indemnity.

Coversure (Hull)
Suite 10 Dunston House, Livingstone Road, Hessle. HU13 0EG