Forum Brief: Flooding insurance

Over 200,000 people may find that their homes are uninsurable and unsellable after insurers said yesterday they could not continue to release flood insurance for some properties.

Forum Response: The Association of British Insurers

Mary Francis, director general of the Association of British Insurers, told ePolitix.com: "This country is fortunate to have a well-established system of flood insurance. Very few other countries enjoy anything like this degree of protection, as recent experience in Central Europe has so graphically illustrated.

"We warmly welcome the government's plans to increase spending on flood defences, and to make other improvements in flood risk management. It is now important for our customers and the industry that promises are turned into action. The faster the plans are implemented, the greater the benefit for all.

"Today's announcement is good news for policyholders, and for all those who want to see an effective system of flood risk management in this country. We are committed to playing our full role in bringing this about."

Forum Response: The Council of Mortgage Lenders

A spokeswoman for the Council of Mortgage Lenders, told ePolitix.com: "The CML welcomes the ABI's assurance that its members will continue to provide flood insurance on the majority of homes in areas at risk of flooding.

"However, further clarification is needed both on how the ABI's policies will work in practice and on the number and location of properties which may fall into the 'high-risk' category where insurance cover cannot be guaranteed.

"We will continue to work with the ABI and the Environment Agency to ascertain what the position is for both borrowers and lenders."