The Association of British Insurers have warned of up to 200,000 homes left uninsured, if the government does not subsidise flood insurance households in high risk areas.
Recent press reports say the ABI and its members have called on DEFRA to “seriously consider” subsidising flood insurance in high risk areas, once the Statement of Principles expires in 2013. Possible options include a government subsidy on premiums for policyholders, over a capped limited, says a report in the Insurance Industry’s Post magazine. A free market for flood insurance would be ‘dangerous’ according to the ABI and leaving insurers to pick up the bill for flooding in high risk areas would be unacceptable.
The ABI has warned that homes will be left ‘uninisurable’ with property owners facing impossibly high premiums once the current agreement between the Government and insurers expires. Read the report in This is Money
Read the ABI press statement responding to the Government’s proposals on flood risk.