ABI pleased with flood insurance agreement
Posted on July 14th 2008
The Association of British Insurers (ABI) has welcomed the government's new long-term investment strategy for flood defences.
A deal has been struck between Downing Street and insurers, with the former claiming that it will not allow "inappropriate" developments in flood-risk areas to be given planning permission.
The latter have agreed to make insurance readily available for homes and small businesses where the annual flood risk is no worse than 1.3 per cent (one in 75).
Furthermore, they have also agreed to offer cover to vulnerable existing customers, as long as the government puts plans in place to reduce the risk over the coming five years.
Commenting on the deal, Stephen Haddrill, the ABI's director general, said: "This agreement is good news for everyone at risk of flooding.
"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."