Insurance companies agree flood coverage
Thanks to a deal between the government and the insurance industry today millions of homes across the country have been guaranteed continued cover against flood damage.
As if it is not enough for many householders to live in fear of flooding the Association of British Insurers had threatened to withdraw flood damage protection from people in danger zones unless the government committed to increased spending on flood defences.
The government agreed, in principle, to a five year plan aimed at high flood risk areas with long term investment and also legislation to prevent future development on high risk areas. In turn the ABI will continue to offer protection to customers in high risk zones, whilst allowing new customers in zones of moderate risk to apply for new policies.
Justin Jacobs from the ABI said: "What we've agreed with the government is that if they can make sure as many people as possible are protected, we'll be able to make sure we can offer affordable insurance to all our customers who want it."
"The pressure remains on the government because they must deliver those defences to people in order make sure we can offer affordable insurance."
So, the estimated half a million homes in flood risk areas now have some good news. They can continue to protect their property whilst they can expect the government's new long term strategy to improve protection and diminish the likelihood of future flood damage.
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