Sir David Davis welcomes Governments progress on tackling the future cost of flood insurance

Sir David Davis has welcomed the Governments plans to tackle the cost of insurance and the threat of some homes becoming uninsurable in high risk flood areas. Yesterday the Government announced that a new agreement had been reached with the insurance industry. Ministers have agreed a deal that will provide “in principle” subsidised insurance for high risk houses. The new ‘Flood Re’ solution will be subject to a consultation period – which closes on the 8th August 2013- and would involve insurers paying into a pool to create a fund to meet claims for those in areas at a high risk from flooding. This funded by a £10.50 levy on every household in the country. Of this news Sir David Davis said:

“This announcement comes as a great relief to the people of Haltemprice and Howden, and the wider East Riding area. We know all too well the heartbreaking damage flooding can cause. Hull and East Riding has the highest number of properties at risk from flooding of all local authorities in England. In Haltemprice and Howden alone, there are 1483 properties at a significant risk of flooding.

With little more than a month to go before the extension on the current Statement of Principles runs out, news that the government and the insurance industry have reached an agreement will help to put at ease the many worried minds of East Riding.

I am pleased that the government’s preference is to work with the insurance industry to secure the affordability and availability of flood insurance, but also has a fallback position where it would regulate for affordable cover. This means customers can have confidence in this issue is being addressed one way or another.

As well as tackling the cost of insurance, I am pleased that £370 million has also been agreed to be invested in flood defences in 2015/16 which will help prevent the flooding occurring in the first place.

This announcement will ensure that affordable flood insurance cover will remain available in East Riding.”