| tr> | | | | providing improved flood defences. As part of cost |
| We have just had the first year’s anniversary | | | | benefit studies, the Government has introduced new |
| of the flash flooding which occurred at Boscastle in | | | | flood planning procedures, which mean that |
| Cornwall. The floods saw some of the worst damage | | | | highly-populated flood plains like the Vale of York will |
| wrought by sudden rainfall in the UK for many years. | | | | receive additional help with defences, but less |
| The flood was caused by the remains of a hurricane | | | | populated areas may end up with nothing. These |
| which crossed the Atlantic, collecting vast amounts of | | | | measures go some way to helping some of the more |
| water crossing, and was then pushed high above an | | | | highly populated areas against flooding, but do nothing |
| area inland of the village depositing around 1,500m litres | | | | for regions with lower population densities, and provide |
| (330m gallons) of water within two hours. | | | | no protection against other costly emergencies such |
| At the time insurance companies were estimating the | | | | as hurricanes or acts of terrorism. |
| bill for commercial damage to local businesses, would | | | | A recent report by the insurer Axa warned that fewer |
| be as high as £15m. | | | | than 50% of small firms do not have a plan in place to |
| There is perhaps some comfort for insurers in that it | | | | ensure that their business could survive should they be |
| could have been worse. Hurricane Charley, which hit | | | | hit by an emergency or disaster. Axa highlighted that |
| Florida around the same time, cost over an estimated | | | | many businesses, especially in the South East, are not |
| £6bn. | | | | covered against environmental risks such as fire and |
| In August this year, just a week after Birmingham was | | | | flood, and fewer have any protection against the now |
| battered by a tornado, residents in Bristol witnessed a | | | | high profile terrorism threats. |
| twister which was up to 1,000 ft (300metres) long | | | | Following a claim, such as for a fire, or flooding, most |
| sweeping across the skies over the southern suburbs. | | | | household insurance policies will cover the cost of |
| The twister swept across a 15-mile area, including the | | | | alternative accommodation, if the property is |
| suburbs of Whitchurch, and came close to causing | | | | uninhabitable; likewise, many companies have business |
| widespread property damage. | | | | interruption cover, which will pay the cost of alternative |
| Both government organisations and insurers have | | | | accommodation, however this is not always |
| admitted that with global warming increasing, they have | | | | guaranteed and you need to carefully check the policy |
| seen an increase in the number of serious weather | | | | wording. |
| related incidences. | | | | Even if you do have insurance, you need to ensure |
| The Governments environment agency has stated | | | | that it is suitable for your needs. Wherever you obtain |
| that, climate predictions also indicate that Britain will | | | | your insurance, whether it is from a direct insurer such |
| be windier. One study suggests 30 percent more gales | | | | as Norwich Union, brokers like Endsleigh, or through |
| in Wales and southern England in winter, increasing the | | | | comparison sites such as Moneynet ( ), it is vitally |
| risk of another storm like that in 1987, which left £2 | | | | important to check all your coverage details. Many |
| billion of damage in its wake. | | | | people in Boscastle believed that they were |
| According to the environment agency, current | | | | completely protected, only to discover after the floods |
| estimates are that peak river flows in Britain could be | | | | that they had become victims to under-insurance. If the |
| 20 percent higher by 2080. This could have important | | | | level of cover obtained is not adequate, then insurers |
| implications for the flood zones of rivers - in a review | | | | may only pay a proportion of a claim, taking the view |
| of flood defences last year, the Environment Agency | | | | that you have been under-paying on premiums. |
| found that a tenth of the population in England and | | | | Several residents in Boscastle faced insurance |
| Wales now lives on flood plains
The combination of | | | | shortfalls of up to 50 per cent. |
| sea level rise with high tides and changes in winds | | | | Thankfully in the Boscastle flooding, despite fears from |
| could increase the frequency of extreme water | | | | the emergency services, there was no loss of life; |
| levelsand hence risk of floodingin some east | | | | however as the fire fighters union fears following the |
| coast locations by ten, or even, twenty-fold. | | | | London bombings, exclusion clauses placed into life |
| The Association of British Insurers ( ) support this view | | | | insurance policies could mean that many individuals do |
| stating in a recent report that, in the UK, climate | | | | not currently have any cover for certain unpredictable |
| change could increase the annual costs of flooding by | | | | emergency events which are out of their control. |
| almost 15-fold by the 2080s under the high emissions | | | | The upshot appears to be that the current situation is |
| scenario, leading to potential total losses from river, | | | | one of caveat emptor, or "let the buyer beware". A |
| coastal and urban flooding of more than $40 bn (£22 | | | | situation that is likely to get worse with global warming |
| bn). | | | | causing increased extreme weather conditions, and |
| Some insurers had threatened to start cancelling high | | | | rising terrorism threats. |
| risk policies unless the Government invested heavily in | | | | |