Insurance: Flood Risk Areas

Lord Dubs Excerpts

Wednesday 22nd May 2013 Lords Chamber

Asked by

[Lord Dubs]

To ask Her Majesty’s Government what proposals they have to ensure insurance cover for property in flood risk areas, in the light of the reported lack of progress in talks with the insurance industry.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley)]

My Lords, we are at an advanced stage in negotiations with insurers towards a successor to the statement of principles. Insurers have voluntarily agreed to abide by the current agreement until 31 July to allow time for the outstanding issues to be concluded.

--- Later in debate ---

[Lord Dubs]

My Lords, will the Minister confirm that there were 500,000 insurance claims for flooding last year and that 2.5 million properties are deemed by the Environment Agency to be at risk of flooding? He will know that the negotiations have gone on for a long time. Does he accept that it is vital that they are brought to a rapid conclusion to safeguard the position of many homes in the country and to ensure that people can sell their houses, which at the moment may prove impossible?

[Lord De Mauley]

My Lords, I broadly agree with the noble Lord that negotiations must be brought to a satisfactory conclusion as soon as possible. That is what we are working on, as I have said. It is worth saying that the Secretary of State has received a letter from the ABI—I have ensured that a copy is in the Library—in which it confirms that its members agree to continue to meet their commitments for a further month to enable the resolution of negotiations. To me this clearly demonstrates its good intentions and its determination to reach an agreement.