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Flood Insurance Scheme Should Be Extended To Businesses - Farron

April 4, 2016 2:01 PM

South Lakes MP Tim Farron has called for the government's Flood Re scheme, which launches today, to be extended to provide cover for small businesses.

The Flood Re scheme is designed to make flood insurance available and affordable to home-owners in flood-prone areas. It will cap insurance premiums for flood damage for those at risk of flooding. However, the scheme only applies to homeowners and excludes small businesses.

SLDC estimates that 2,205 domestic and 350 commercial properties were affected by flooding in South Lakeland in December 2015.

Despite claims that small businesses do not struggle to get insurance, research by the Federation of Small Businesses found that 50,000 small businesses at risk of flooding had been refused cover, with 75,000 finding it difficult to get insurance at an affordable price.

Tim said: "Today's launch of Flood Re is welcome but we could do more. As devastating as the floods have been for homeowners here in South Lakeland, it has been equally catastrophic for the small businesses which are the backbone of our local economy. Extending this scheme to cover small businesses could provide welcome relief for hundreds of small businesses in our area.

"With the impact of climate change this isn't going to be the last time communities are hit by flooding and it will become more and more difficult for small businesses to get affordable insurance.

"The Government needs to get serious about the situation and allow businesses to access the Flood Re scheme, before even more businesses are devastated by the financial cost of flooding."