Flood risk deadline set for 31st July
The Association of British Insurers (ABI) says its members will continue to meet their commitments to offering flood insurance for an extra month after an agreement with the Government expires on 30th June.
Flood insurance for existing customers will be renewed until 31st July but according to the ABI, the current agreement is unsustainable beyond that date as it distorts competition, there being no incentive for new insurers to offer flood cover.
Around one in six homes in England and Wales is at risk of flooding – and it’s not just river and coastal flooding; surface water flooding caused by rainfall running across the ground is a growing issue.
The existing agreement on flood insurance has been in place since 2000 and if no new deal can be reached by 31st July, ABI members will revert to an open market for flood insurance, with insurers free to decide to whom they offer flood cover and at what price.