Flooding: Insurance

Baroness Knight of Collingtree Excerpts

Wednesday 18th July 2012 Lords Chamber

[Baroness Knight of Collingtree]

My Lords, will my noble friend the Minister bear in mind when dealing with this matter not just the terrible inconvenience of having one’s house flooded but the fact that no mortgage can be obtained if insurance is not available? It therefore becomes almost impossible to sell one’s house if the deal does not go through.

[Lord De Mauley]

My Lords, that is a very important point. We recognise that there are concerns over the continued ability of existing and prospective mortgage-holders to find affordable insurance. We are working with those involved to get a better understanding of what the impact on the mortgage market would be of increased premiums and how lenders would choose to react.