In the continuing saga of Flood Re and affordable flood insurance, there have been developments on the subject of cover for small businesses and leasehold properties.
At the moment the proposed Flood Re agreement, which is part of the Water Bill and becomes law next year, would guarantee affordable flood insurance for most of us – but it excludes small businesses, leaseholds, properties built after 1st January 2009 and houses in Council Tax Band H. Now the Department for Environment, Food and Rural Affairs (Defra) has announced that it will publish findings in December on whether there are ‘systematic issues’ in excluding SMEs and leasehold properties. This isn’t the first potential U-turn: we wrote back in April about the possibility that Band H properties would be brought in to the Flood Re agreement.
The British Insurance Brokers Association (BIBA) has been reported as saying that, if the cost of flood insurance is increased, some customers would need to make sacrifices which could include not having flood cover at all or having to move their businesses or homes. There are already examples of people who have been refused flood cover for extraordinary reasons, such as a homeowner in Devon who was in an at-risk postcode, or others having excesses of up to £30,000 added to their policies.
This story just goes on and on.