Sheffield broker urges government to make a decision on flood insurance
6th March 2013
Sheffield broker IFM Insurance is urging the government to agree a solution with the insurance industry on flood cover before it is too late.
The "statement of principles" that governs existing insurance arrangements between the government and the insurance industry expires in June 2013. The current statement means insurers agree to provide cover for flood-risk properties provided the government continues to invest in flood defences. Research of IFM's business clients last year revealed that over 90% felt that the City's current flood defence capability would not be able to cope with another flood on the scale of 2007. The 2007 floods directly affected 50% of those clients questioned.Alarmingly over 90% of clients were also unaware that the agreement ends this June. According to IFM a 2013 expiry of the current agreement could impact on local businesses and consumers seeking flood cover, resulting in uncertainty and -prohibitively expensive insurance premiums. The warning comes at a time when around 300 businesses have been asked to help pay for a £11.4m flood defence scheme in Sheffield. David Biggs, Managing Director of Sheffield based IFM Insurance Brokers said: No-one asks to be flooded it is one of the most traumatic experiences a family or business can face and it is in all of our interests for Government to put in place a framework that delivers insurance that is available, affordable and socially just. This is a huge issue that is not getting the focus it needs, and time is running out. It's a major problem as uninsurable property may be difficult to sell; banks and mortgage lenders may not wish to lend on properties in flood risk areas. -