Flood measures 'nowhere near enough'

The amount of money set aside by the government to deal with flooding is nowhere near enough, according to the Association of British Insurers (ABI).

The comment was made after the government's comprehensive spending review set the figure to be allocated to flood defences at £600 million in 2007-08 to £800 million by the start of the next decade.

In view of this perceived shortage of funding, insurers are threatening not to provide home insurance cover to people in North Yorkshire – one of the worst affected areas in the summer floods.

Commenting on the government's funding decision, James Caldwell, of online financial advice site fairinvestment.co.uk, said: "While many people can sympathise with the insurers who are currently operating at a loss, it’s the UK householder who is picking up the bill for the government’s inadequate flood prevention measures."

The ABI says that many of its members simply cannot afford to keep reimbursing people for flood damage under its home insurance policies if improvements are not made to flood defences.

11/10/2007 14:41:36