UK sees flood of unique insurance

www.moneynews.co.uk > Insurance > UK sees flood of unique insurance

UK sees flood of unique insurance

Fri 24th Nov 2006

Insurers in the UK have set themselves part from their counterparts in other parts of the world by offering customers flood insurance as part of residential policies, according to an account manager from risk management consultancy Ambiental.

It is voluntary schemes that cover flood and earthquake damage in most other countries and Nick Bollons has stated his belief that by offering provisions for flooding, British insurers were presenting themselves with a problem.

Coastal or inland flood risk in the UK affects some two million households and of this figure, just under a quarter (400,000) are currently at a high risk of suffering flooding.

Mr Bollons said: "In the UK we are one of the few countries where we have a commercial insurance policy for flood. This makes it quite difficult for the level of understanding you need to have for insuring flood risk.

"The current situation with the ABI [Association of British Insurers] is that flood cover is part of the insurance policy. That is done on an agreement between the ABI and the UK government on the provision that standards of flood defences are kept to an acceptable level."

Lord Bruce-Lockhart, chairman of the Local Government Association, spoke to the Environment Agency on November 21st regarding his belief that size and location decisions relating to new housing should be made by local councils.

Related News : Insurance
	Under-insurance 'a costly mistake for Brits'
	Rodents and pests 'causing havoc for homeowners'
	Brits 'should be aware of home cover details'
	PPI scandal 'has helped tighten financial regulation'
	Location 'can impact home insurance costs for Brits'
	FSA and CC 'failed to tackle PPI issue head-on'
	Pet cover 'important for Brits to get right'
	UK homes are 'falling into disrepair'
	Brits advised on reducing home insurance cost
	UK insurance 'has become more complex'