Flooding Limits Will Help Insurance

ociation of British Insurers (ABI) is warning homeResearch by the ABI has revealed that 75 per cent of
owners, who live in areas that are at more risk ofBritons believe that not enough action is being taken to
flooding, that their properties may not be covered byprevent similar catastrophes while 98 per cent believe
home insurance policies, unless the Government,drainage should be at the top of the list in order to
intervene and create measures that will limit floods andreduce the flood risk.”
thus their damaging affects.Half of the insurance claims made last year, were
According to the ABI, there are 517,000 homes atrelated to flood claims from the victims affected.
significant risk of being flooded. The floods of lastClaims were made because of damage caused by
summer, cost the ABI’s members £3 billion inwater coming up through drains. The floods last year
claims. Furthermore, nearly 5,000 homeowners are stillrevealed that many drainage systems are inadequate
living in temporary accommodation, following lastto deal with prolonged rain.
year’s floods, according to the Government. OfIn response to the ABI’s findings, Phil Woolas,
these people, it is estimated that at least one in eightEnvironment Minister, said: “It was unfair to suggest
households do not have insurance.that nothing had changed as since last year’s
Nearly 50,000 properties were affected by the floodsfloods. The Environment Agency and local authorities
from last June and July, with Gloucestershire,have undertaken a lot of work to put in place flood
Worcestershire, Oxfordshire, Berkshire and Southdefence programmes.
Wales being the worst hit.Mr Woolas concluded: “Both the agency and
Speaking at a One Year On conference today, Nickcouncils are using their powers to restrict building on
Starling, ABI’s Director of General Insurance andflood plains.”
Health, said: “The Government must take steps toCommenting on the ABI's calls for more action to
identify and better manage the threat of flooding ifreduce flooding, Andy Leadbetter, head of home
cover is to remain widely available.insurance at price comparison site
“Flood cover has been standard for householdmoneysupermarket.com, said: “The report out today
insurance for almost 50 years and is provided on theis another call for the Government to step up its
belief that floods will not occur more than once inefforts to reduce flood risk and this time the ABI is
every 75 years, or that adequate defences areacting as town crier. It has been one full year since
planned within the next 5 years if the flood risk isfloods hit Britain and homeowners are already finding it
higher.difficult to find affordable and competitive insurance
However, last summer’s floods, which were thecover, especially if they have made a claim for
worst ever recorded, produced 4 years’ worthflooding.
of claims in only 2 months.“DEFRA announced yesterday the Environment
Mr Starling added: “A sense of urgency in dealingAgency will be responsible for all forms of flood risk
with flooding is required.management throughout the country.