Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Flooding: Call to end insurance stalemate

Flood charity the National Flood Forum has urged the government to settle its differences with insurers over flood insurance.

The government and insurance industry have been in talks for more than two years to find a replacement for the “Statement of Principles”, which runs out in June 2013. But there is still no deal to ensure householders and small businesses can get affordable flood insurance once the arrangement ends.

At issue is the need for householders in flood risk areas to obtain insurance. As it stands, it is possible that some insurers will refuse to cover high risk homes.

In an open letter to new environment secretary Owen Paterson, National Flood Forum chairman Charles Tucker said: “Time is running out - talking should stop and action begin.”

He added: “We’ve always said that it is the responsibility of government to establish a clear framework for flood insurance. A completely free market will leave many thousands of high risk properties unable to obtain insurance in future years.”
Tucker said the organisation welcomed government’s recent acceptance of a proposal for a levy and pooling system.

In July Paterson’s predecessor Caroline Spelman said the government was considering a “cross-subsidy mechanism” that would enable insurance companies to raise money from all policy holders to cover the cost of insuring homes at high risk of flooding (NCE 19 July), but no details have yet been confirmed.

Association of British Insurers director of general insurance Nick Starling said the talks between government and the insurance industry were at an “advanced stage”.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.