The rumblings around Flood Re – the proposed legislation to ensure affordable flood insurance – continue. This time, it’s the results of an insurance industry survey into current difficulties in taking out flooding insurance.
The British Insurance Broker’s Association (BIBA) has carried out research in response to a government request for information on properties excluded from the current proposals contained in Flood Re (see our previous blog on this). Apparently 64 per cent of brokers have had difficulty in the past year in placing property insurance that included cover for flooding and 85 per cent said it was harder to place these risks.
Over half of consumers surveyed (55 per cent) reported difficulties in purchasing insurance to cover flooding. Even if you can obtain cover, it’s getting more expensive: and 47 per cent of those surveyed said they would restrict their insurance by, for example, removing flood cover from their policy. Of even more concern is the fact that 16 per cent wouldn’t take out insurance at all.
According to BIBA, “there is an issue with affordability and availability of flood insurance for properties not covered by Flood Re, particularly small businesses.” Quoted in Post magazine, the article went on to say that the Department for Environment, Food and Rural Affairs has now commissioned its own research which will include the market for commercial flood insurance, which is not covered by Flood Re. There are also plans for roundtable discussions later this month between the insurance industry, the property sector and the government to look at the issues around commercial flood insurance.
We will report back when there is more news.