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Flood-hit businesses face sky-high insurance costs - Farron

August 9, 2016 5:14 PM

South Lakes businesses are facing sky-high insurance costs, but are excluded from the government's flagship insurance scheme. Local MP Tim Farron is calling for the scheme to be extended to cover small businesses.

Following last winter's devastating floods, many South Lakes businesses have seen the cost of insurance rocket. One Kendal business has reported that its insurance will rise from £380 per month to £986, whilst their excess is now £50,000 compared to between £4000-£5000 previously.

The government's flagship FloodRe scheme is designed to bring down the cost of insurance for homeowners. However, business premises are excluded from the scheme. The government's website states that "there is already an effective and competitive property insurance market covering them" which gives them access to "affordable flood insurance".

Tim has long called for the scheme to be expanded to cover small businesses. He has written to the Environment minister to raise his concerns.

Tim said: "For small businesses that have already been hit by terrible flooding, the rocketing cost of insurance could be the straw that breaks the camel's back. The government must look at the evidence and accept that the market is currently not delivering for small businesses.

"Unless the government acts now, businesses will disappear, and with them the jobs they provide. The government must look at extending the FloodRe scheme to cover small businesses."