With around 200 flood warnings and 300 alerts currently in force in England and Wales, the British Property Federation (BPF) has expressed its deep disappointment over government’s rejection of proposals for long term flood insurance after talks with the insurance industry reached an impasse. It has been estimated that around 200,000 high-risk households could struggle to get affordable insurance when the current government agreement comes to an end in July 2013. The Association of British Insurers (ABI) proposed the government provide a temporary overdraft facility, which would only be used to pay claims while the scheme built up cash reserves, with the borrowed sum to be repaid by the industry the following year. The BPF has this week urged the government to commit to the scheme, as property without insurance is essentially worthless. Liz Peace, chief executive of the British Property Federation, said: “As the sad current events highlight, wide scale flooding has significant implications for property owners. “The Government needs to act quickly on its word to provide greater assurances over flood protection for developers to ensure that homes and regeneration sites are insurable and protected. “We believe the ABI’s proposal could have provided the desperately needed long term solution, instead the clock is ticking before the Statement of Principles expires next year."
Article courtesy of Property Investor Today