Good news for homes at risk of flooding
We all remember the flooding that took place in summer 2007 causing chaos to many homes and businesses throughout the UK, since then there has been talk of insurance companies refusing to insure properties in at risk areas.
The Government and the Association of British Insurers (ABI) have now revised the Statement of Principles regarding the provision of flood insurance and these changes will be effective as of 1 August 2008. What does this mean for homes and businesses that have increased risk of flooding?
Well, until 30 June 2013 any domestic property or small business will be entitled to flood insurance on the following basis:
- flood insurance will be a feature of standard household and small business policies if the flood risk is not significant
- If the flood risk is significant then as long at the Environment Agency has announced plans to reduce the risk of flooding so that it falls below significant levels in the next 5 years then flood cover will be offered
However, you should be aware that any new properties built after 1 January 2009 will fall outside of the Statement of Principles and as such flood damage insurance may not be provided.
The ABI and the Government are also assessing the case for measures to protect commercial property from the risk of flooding in the future.