Record-breaking rainfall and delays in reaching an industry agreement are combining to make flood insurance difficult for homeowners, according to a recent report. Some are facing higher prices – and others are being denied cover completely.
According to The Independent, a number of local councils in areas at high risk of flooding have reported that homeowners who have tried to renew their home insurance have been denied cover or quoted hugely inflated prices. And they attribute this to the failure of the Government and the Association of British Insurers (ABI) to reach a new agreement to replace the current arrangement for flood cover.
The Local Government Association (LGA) has warned that the longer Government and the ABI fail to reach a deal, the more householders are likely to be refused cover and therefore risk losing their homes in the event of a flood.
An LGA spokesperson commented: “A new agreement should have been sorted long before now and the continuing delays are having a very real and severe impact on thousands of people who will be exposed to the risk of losing their homes if they are unable to find insurance.”
A spokesperson for the ABI however said: “Insurers are determined that flood insurance remains available and affordable, and we are currently in constructive discussions with Government to explore how we can achieve this.”
