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| Version 0 | Version 1 |
|---|---|
| 200,000 homes 'at flooding risk' | 200,000 homes 'at flooding risk' |
| (about 7 hours later) | |
| Up to 200,000 homes will face insurance problems when a government agreement ends next year, the Association of British Insurers (ABI) has said. | Up to 200,000 homes will face insurance problems when a government agreement ends next year, the Association of British Insurers (ABI) has said. |
| It mapped neighbourhoods with the highest risk of flooding in England and Wales - and where residents may struggle to insure their homes. | It mapped neighbourhoods with the highest risk of flooding in England and Wales - and where residents may struggle to insure their homes. |
| Boston and Skegness, and the Vale of Clwyd face the greatest risks, it said. | Boston and Skegness, and the Vale of Clwyd face the greatest risks, it said. |
| Meanwhile a committee of MPs has raised concerns about what funds are available to maintain flood defences. | Meanwhile a committee of MPs has raised concerns about what funds are available to maintain flood defences. |
| It was unclear "where the buck stops" for managing the risk of flooding, a report by the Public Accounts Committee (PAC) said. | It was unclear "where the buck stops" for managing the risk of flooding, a report by the Public Accounts Committee (PAC) said. |
| Agreement | Agreement |
| The ABI has repeated its warning that a pact ensuring cover for high-risk homes ends in June 2013. This obliges insurers to provide cover for high-risk properties while the government continues to improve flood defences. | The ABI has repeated its warning that a pact ensuring cover for high-risk homes ends in June 2013. This obliges insurers to provide cover for high-risk properties while the government continues to improve flood defences. |
| The ABI wants the government to share the risk for the most-vulnerable properties, claiming that the current deal distorts the market. | The ABI wants the government to share the risk for the most-vulnerable properties, claiming that the current deal distorts the market. |
| A spokesperson for Defra, the government department involved, said: "We want flood insurance to remain widely available and are continuing to work with the insurance industry to ensure that this will be the case after the current agreement between government and insurers expires in 2013. | |
| "As part of these discussions, over the next few months we will consider whether there are feasible, value for money ways of targeting funding support to those most in need. We will make further announcements in the spring." | |
| The ABI has analysed official data to highlight the areas with the most homes at significant flood risk - defined as a greater than one in 75 chance of flood in any given year. | |
| Boston and Skegness headed the list, with 7,550 homes facing significant risk. This was followed by the Vale of Clwyd, with 7,339 homes at risk, then Folkestone and Hythe (7,196), Windsor (7,125), and Runnymede and Weybridge (6,541). | Boston and Skegness headed the list, with 7,550 homes facing significant risk. This was followed by the Vale of Clwyd, with 7,339 homes at risk, then Folkestone and Hythe (7,196), Windsor (7,125), and Runnymede and Weybridge (6,541). |
| The ABI said that these homes faced problems in getting insurance after June 2013, when the agreement ends. | The ABI said that these homes faced problems in getting insurance after June 2013, when the agreement ends. |
| It claimed that, at present, people in lower risk flood areas paid more in premiums than would otherwise be the case to subsidise those at higher risk, and customers in high-risk areas were tied to their existing insurer. | It claimed that, at present, people in lower risk flood areas paid more in premiums than would otherwise be the case to subsidise those at higher risk, and customers in high-risk areas were tied to their existing insurer. |
| 'Priority' | 'Priority' |
| The Public Accounts Committee urged the Department for Environment, Food and Rural Affairs (Defra), to secure a new agreement urgently. | The Public Accounts Committee urged the Department for Environment, Food and Rural Affairs (Defra), to secure a new agreement urgently. |
| On the other side of the equation is flood defence. The PAC said that there was a great deal of uncertainty about whether there was enough money to improve flood defences and protection in the long-term, and who paid for it. | On the other side of the equation is flood defence. The PAC said that there was a great deal of uncertainty about whether there was enough money to improve flood defences and protection in the long-term, and who paid for it. |
| The current bill is at least £1.1bn a year, according to the committee of MPs, and this is set to rise owing to climate change. | The current bill is at least £1.1bn a year, according to the committee of MPs, and this is set to rise owing to climate change. |
| A recent assessment for the government claimed that this could go up to between £1.5bn and £3.5bn a year by the 2020s. | A recent assessment for the government claimed that this could go up to between £1.5bn and £3.5bn a year by the 2020s. |
| "Flood protection is a national priority. Yet it is unclear where the buck stops and who is ultimately responsible for managing the risk of flooding," said Margaret Hodge, who chairs the PAC. | "Flood protection is a national priority. Yet it is unclear where the buck stops and who is ultimately responsible for managing the risk of flooding," said Margaret Hodge, who chairs the PAC. |
| "It is not acceptable that local people should be left in doubt about where responsibility and accountability lie." | "It is not acceptable that local people should be left in doubt about where responsibility and accountability lie." |
| The report said that with people being asked to pay more towards flood protection in their area and take on more of the risk, the Environment Agency needed to involve communities better in decisions on flood protection. | The report said that with people being asked to pay more towards flood protection in their area and take on more of the risk, the Environment Agency needed to involve communities better in decisions on flood protection. |