Farron welcomes new insurance proposals for houses at risk of flooding
South Lakes MP Tim Farron has welcomed the vote in the House of Commons on Monday for the 2nd reading of the Water Bill. The Bill will establish the legislative framework for a not-for-profit flood insurance fund, to be managed by the insurance industry.
The Fund will for the first time aim to deliver a competitive market, so that consumers in areas at risk of flooding will have a choice about where they go for their insurance. In July, the Association of British Insurers (ABI) 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.
Commenting earlier today, Tim said: "It is essential that families are able to insure their houses in areas at risk of flooding. This is an incredibly important issue in areas like ours, with significant numbers of houses at risk of flooding.
"I am delighted that the Government is working to introduce a scheme that will for the first time promote genuine choice for consumers about their household insurance."
A recent statement by the National Flood Forum said: "Flood Reports will allow many more people to access affordable flood risk insurance as part of their household insurance than are able to do at present. In doing so, it will provide much better support to people who do flood. As well as the financial impact of flooding, it will help to mitigate the trauma and stress to those it affects."