We wrote recently about a potential re-think on the exclusion of band H properties from the Flood Re scheme, which is designed to ensure affordable flood insurance in high-risk areas. Apparently David Cameron had “privately ordered a U-turn”, and it seems this campaign is gathering pace.
According to a recent article in Post magazine, the Association of British Insurers (ABI) has now also changed its mind: it has written to the Environment Secretary, asking for these higher-value properties to be included. The letter cites the recent floods, which showed flooding affects anyone and everyone, regardless of their council tax band.
The reason band H homes were excluded in the original proposal was that it was feared there would be political opposition to the cross subsidy element of Flood Re: this would mean that the levy on smaller homes – which may nor may not be a flood risk – would be used to cover larger properties. However, this opposition has not materialised and there is now cross-party support for the mechanism.
This is just the latest in a long line of changes and challenges to the proposed scheme. The recent floods have put into sharp relief the need for something to happen, but it seems there is still a long way to go.