Time running out to secure insurance deals for flood-hit homeowners

Households in flood-hit areas may soon find it hard to get insurance unless the government and insurance companies thrash out a new deal. Deluged: It?s raining and the claims are pouring in but homes in flood-hit areas could soon find themselves unable to get cover (Picture: AFP/Getty) Time is running out to find a way to protect homeowners from the effects of extreme weather, says the Association of British Insurers. An agreement that ensures homes in high-risk areas are always covered runs out in less than a year and there is no alternative in place. Simon Douglas of AA Insurance said: ?Flood protection is a national priority, yet many people in flood-prone areas may find their homes difficult to insure from later this year. ?People want the government to take decisive action now to ensure that their homes are protected.? This weekend saw nine flood warnings and 48 flood alerts and some householders say insurers are already declining cover in high-risk areas. The sector wants the government to build flood defences before it agrees to continue to insure households. Nick Starling, of the Association of British Insurers said: ?We have done a lot of work on this issue and are currently at an advanced stage in our discussions with the government.? Environment secretary Caroline Spelman is expected to report on the progress of the agreement before parliament goes into recess. The cost of the deluge so far this year is not yet known but the summer washout of 2007 cost the insurance industry ?3billion. Four times as many homes and businesses could be at risk of flooding in the next 20 years, the government?s committee on climate change reported last week.

Source: http://bbc-worldnews.net/2012/07/time-running-out-to-secure-insurance-deals-for-flood-hit-homeowners/

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