The current agreement under which insurers will continue to offer flood insurance to their existing customers will expire on 30 June 2013. The insurance industry has proposed a new a scheme to ensure customers can still buy affordable flood insurance after this date. The Association of British Insurers (ABI) is locked in talks with the government and is attempting to bring this proposal into action.

The UK has seen recent flooding, much of which has occurred in Wales and the South West of England. This is a worry for some homeowners as they will be left at risk of flooding and without appropriate cover, should the government not wish to contribute funds to the insurance industry.

The government continues to provide funding for flood defences but should no clear agreement be made soon, homeowners could be left with the risk of a potential doubling of their premiums.

Ministers have rejected proposals from the ABI for the government to set up a temporary overdraft for the insurance industry. This overdraft would then help it meet the costs of emergencies in the first few years of new scheme while funds build up. The ABI claims that the talks have been going on for too long – more than two years – and up to 250 million houses across the UK are “at risk” of seeing their premiums soar.

Owen Pattison, the UK Environment Secretary, explained that talks were ongoing but that the government does want to achieve “a better system of insurance which provides affordability – as comprehensive a system as possible.”

If you are worried about flooding there are several things you can do to “plan for the worst”. If you live in a flood risk area then make a flood plan . You might also like to read the ABI’s “Responding to major floods: What to expect from your home insurer” leaflet for information on what to expect in an emergency situation.

Academy Insurance specialise in providing competitive insurance for homes at risk of flooding. We work with panel of leading insurers and Lloyds underwriters who specialise in offering flood insurance cover so we have access to some of the most competitive rates in the industry.

To find out how we can best help you plan for the worst why not give us a call ?