Flood insurance deal washes away worries
Homeowners in areas hit by flooding in recent years have been faced with being unable to renew their home insurance or be charged huge rates on their policies. But a new deal made between the government and the insurance industry means that these flood hit households will still be able to obtain insurance at a fair price.
The new deal will cap flood insurance premiums by linking them with council tax bands so customers will know the maximum they will have to pay. It will protect nearly 500,000 households but will not come into force until 2015.
The Flood Re scheme will cover households for flood damage and in the event of large scale flooding the government would still step in and supply further funds if the scheme funds are insufficient.
The Environment Secretary, Owen Paterson said "Flooding is terrible for anyone affected by it, and can lead to worries the next time there is heavy rainfall. We have worked extremely hard with the industry to reach an agreement on the future of flood insurance. People no longer need to live in fear of being uninsurable, and those at most risk can get protection now and in the future."
Quotes taken from The Guardian
24.07.13 - MCE Insurance