Long-term future of flood insurance guaranteed

By MoneyhighStreet Staff. Published on July 11, 2008 This post currently has no comments.

flooding
The government and the Association of British Insurers (ABI) have come up with an agreement that should ensure flood insurance remains widely available now and in the future.

As part of the plan, both the government and the insurance industry have agreed they will work together to improve the understanding of flood risks.

What''s more, the government said that it would put in place long-term investment strategies to improve flood defences and make sure the planning system prevents inappropriate development in flood- risk areas.

"This agreement is good news for everyone at risk of flooding," said ABI director general Stephen Haddrill. "We are pleased that the government recognises that a long-term investment strategy, adequately funded, is the best way to manage the growing flood threat.

"It will help ensure that the flood insurance protection, relied upon by millions of householders and businesses, remains widely available."

The agreement was welcomed by the financial services industry. The Council of Mortgage Lenders'' head of policy, Jackie Bennett, commented: "Insurance is an essential requirement for a lender to grant a mortgage. The agreement reassures both homeowners and mortgage lenders which is important in the current environment."