Following the wettest June on record, homeowners devastated by the recent flooding may not be eligible for insurance next year. Some victims of the recent floods have seen their premiums rocket by five times, whilst others have been told they are required to pay the first £5000 of future claims.
Discussions between the Government and the Association of British Insurers in 2008, confirmed that insurers would provide cover for almost all homes on the proviso that flooding defences were implemented. It was made clear however, that contracts would not be renewed beyond June 2013, provoking a lot of anxiety across the nation.
The Council of Mortgage Lenders spoke out earlier this year:
“Without a clear lead from the Government, it may be difficult to ensure that flooding insurance is widely available, at a reasonable cost. Uncertainty could begin to affect lenders and borrowers in the coming weeks. We are therefore keen to begin discussions with the minister and insurers to explore what can be achieved.”