There’s been another interesting response to the proposed Flood Re scheme, which has been drawn up by the Government and insurers to ensure affordable flood insurance for homes across the UK (you can read about this in an earlier blog). This time it comes from the All Party Parliamentary Group on Insurance and Financial Services (APPG), and they’ve made some very interesting points.
According to a report in Post magazine, they’ve firstly called for residential homes which are used as commercial premises to be covered under the scheme. At the moment commercial premises are excluded, but the Group is calling for clarity on whether some types of small businesses are included, especially when residential and business accommodation are mixed within the same property.
The APPG have also called for homes in band H, the top council tax band, to be included: currently, the proposed scheme would exclude these properties. They’ve been quoted as saying: “Nothing should be considered uninsurable under the Flood Re scheme”.
Warnings of a “dangerous spiral”
But the Group sounded a warning: the introduction of the flood obligation could cause insurers to withdraw from insuring properties, which would place a greater burden on other insurers who might then also withdraw, and this could lead to a “dangerous spiral”.
As we keep saying, there is still a long way to go….