Government & ABI reach agreement on flood insurance

Government & ABI reach agreement on flood insurance

Hundreds of thousands of households in flood-prone areas will be guaranteed affordable flood insurance after the government and insurance industry agreed a deal today.

After negotiations with the Association of British Insurers, this new agreement replaces the current ‘Statement of Principles’ that runs out at the end of July and will bring peace of mind to people who will soon need to renew their insurance.

The new agreement will cap flood insurance premiums, linking them to council tax bands so that people will know the maximum they will have to pay.

To fund this, a new industry-backed levy will enable insurance companies to cover those at most risk of flooding. All UK household insurers will have to pay into this pool, creating a fund that can be used to pay claims for people in high-risk homes.

Post taken from Financial Reporter