Following reports this week that up to 200,000 UK homes could face insurance price rises without continued Government support, specialist home insurance broker HI Expert has backed claims made by the Association of British Insurers (ABI).
The ABI wants the Government to continue to share the risk for properties most vulnerable to flood damage through a scheme which obliges insurers to provide cover while the Government continues to improve flood defenses.
HI Expert MD Jenny Carter-Vaughan said: “If the Government isn’t prepared to continue with the flood protection works and, as has been the case, stops maintaining some of the existing protections then the public and the insurance industry are left with a situation that can only get worse.
“The cost of flood damage is enormous and the premiums that are needed to cover the cost are unaffordable for the worst affected areas.
“The sharing of risk is the basis on which insurance is built. A way forward can only be achieved if the Government is prepared to continue to support insurers by helping to maintain and reduce the risk.
“An agreement is needed sooner rather than later as insurers are already looking at commercial properties and refusing to grant renewal cover for flood cover in anticipation of the agreement being withdrawn.”
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