Affordable flood insurance agreement is welcomed by MP
South Lakes MP Tim Farron has welcomed the news that a deal has been struck between the Government and the insurance industry which paves the way for a new scheme to ensure that people who live in homes with a high risk of flooding will continue to have access to affordable insurance. Tim has said that local residents will benefit from this deal.
The Association of British Insurers (ABI) has agreed a Memorandum of Understanding with the Government which lays the foundations for the new scheme.
The scheme provides for a not-for-profit flood insurance fund, owned and managed by the industry, which will help ensure flood insurance for up to 500,000 properties in the UK where obtaining flood insurance in an open market would be problematic. It will replace the current Statement of Principles, which was agreed in 2008 and was due to expire at the end of July.
The new deal announced will cap flood insurance premiums, linking them to council tax bands so that people will know how much they have to pay. According to the Department for Environment, Food and Rural Affairs consultation, a householder in the average band D property will pay no more than an estimated £800.
Tim has campaigned for a long-term solution to the soaring cost of home insurance in areas prone to flooding. Residents in parts of Kendal, Burneside, Staveley, Windermere, Grange and Ambleside who have been having problems with insurers will benefit from this scheme.
Tim said: "This agreement represents a significant step towards a solution which will ensure affordable insurance for those at flood risk without placing unsustainable costs on wider policyholders and the taxpayer.
"I will be keeping up the pressure until we secure the lasting deal for which people in South Lakeland have been waiting for so long."