The ABI (Association of British Insurers) and the Government have reached agreement that ensures flood insurance remains widely available now and in the long term.

Following last summers floods the insurance industry have had to make significant payouts resulting in fears that coverage may be pulled for those most at risk.

The summer floods in Britain cost £3 billion, making 2007 the worst year for weather-related damage, insurers say. It resulted in the ABI to call for a limit on the number of homes and businesses built on land prone to flooding.

Government pledges to invest in flood defences will make offering insurance to those at risk more palatable for insurance firms. In addition to investment in defence systems the government will also undertake to promote access to home insurance for low income households.

Floods Minister, Phil Woolas, said the agreement was a result of successful collaboration and he is, “delighted that the industry has agreed to work with us to raise awareness and encourage homeowners to take steps to protect their homes where appropriate.”

The ABI said the agreement was good news for everyone at risk of flooding. Stephen Haddrill, the ABI’s Director General said, the ABI, “are pleased that the Government recognises that a long-term investment strategy, adequately funded, is the best way to manage the growing flood threat.

The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK

Related articles

• Consumers failing to protect themselves
• Insurance market addresses skills gap
• West country firms hit by floods

Related links

• ABI report