Flood Insurance

Nick Gibb Excerpts

Tuesday 26th March 2013 Commons Chamber

[Nicola Blackwood (Oxford West and Abingdon) (Con)]

I congratulate my hon. Friend the Member for Esher and Walton (Mr Raab) on securing this timely and important debate. I have 1,627 homes and businesses in my constituency that are at significant risk of flooding. I have visited streets in Abingdon, Kidlington and Oxford where ripped-out carpets, kitchen units and discarded furniture were all piled up and abandoned on pavements in 2007, and that sight is branded on my memory. I guarantee that not a single one of those home owners has forgotten that summer, and since then we have had any number of flood warnings that serve, like tremors after an earthquake, to reawaken the anxiety of that week of flooding and the reconstruction that followed. It cost the county £3 million and the country £3 billion.

For those who live at flood risk, there is no respite. Instead, they live in a constant state of uncertainty, never knowing what our delightful British climate will bring. Uncertainty driven by weather is one thing, but uncertainty that is driven by our response to flood risk is another. Other than by inventing a weather machine we are not going to eliminate flood risk, but we have three, interdependent levers to mitigate flood risk and limit the stress that it brings. Those are flood insurance, flood defences and individual property and community resilience.

Whether people are rampant climate sceptics or paid-up members of the Green party, most studies show clearly that changing weather patterns mean that flooding is on the increase, while population increases and poor planning have exacerbated the problem dramatically. We will have to get better at using those levers to mitigate that risk. In particular, overloaded infrastructure, such as drainage capacity, is leaving increasing numbers of constituents at the mercy of not only notoriously hard-to- respond-to surface water, but revolting episodes of effluent flooding. I am aghast that in this day and age I have constituents who have to cope with sewage coming into their homes simply because it is raining. We are supposed to be living in a highly developed country. The worst thing is that the insurance situation means that they feel gagged because they do not want to put their local property market at risk.

[Mr Nick Gibb (Bognor Regis and Littlehampton) (Con)]

My hon. Friend’s description of seeing homes in her constituency flooded reminds me of the problems I saw in Bognor Regis and Littlehampton on 10 and 11 June, when more than 300 homes were flooded. Does she share my view that in addition to the flood insurance issue, we need to spend sufficient capital to ensure that the surface drainage system is sufficient to mitigate such problems when heavy rainfall occurs?

[Nicola Blackwood]

I agree that infrastructure is vital. I believe deeply that many of the problems we face today stem from an inherited legacy of bad planning.

--- Later in debate ---

[Sir Robert Smith]

It is important for the standards to reflect the reality of what is to come in the future rather than to cope with what was learned in the past. The hon. Lady makes a very important point. The maintenance and clearing of the drains is also important so that they can take the surge when it comes. We need to be able to deal with the debris that goes through the system and causes blockages, which often mean that the design specifications have not been met effectively.

Let me reinforce the point that insurance is a collective risk. As insurance companies have become more sophisticated with their computers and marketing, the risk base on which individual premiums are based becomes narrower and narrower. Coming up with the solution where we all as a society bear some of the risk of flooding because we do not know where it will strike next seems to provide an important way forward. June 2013 is not far away, so I hope the Minister will go away from this debate recognising the urgency of the situation: we must provide a solution and people must know how and when it is going to be taken forward. As has been said, if people want to continue to mortgage their houses, they must have insurance, and if new people are to move into a house, they need to able to insure it and to avoid any blight on the property.

[Mr Gibb]

Is my hon. Friend beginning to receive, as I am, some letters from constituents who are already encountering difficulties in renewing their building insurance and particularly the flooding element of it?

[Sir Robert Smith]

Yes, and the much higher excesses are difficult for a lot of people to carry or cover. This is a problem for businesses as well as for domestic properties.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Richard Benyon)]

I echo the plaudits given by Members on both sides of the House to my hon. Friend the Member for Esher and Walton (Mr Raab) for securing this debate and to the Backbench Business Committee for agreeing to it.

I say from the start that, yes, the Government are in arduous and urgent negotiations with the insurance industry. We recognise that the Government’s first and primary role is to tackle risk by building flood defences. We are doing that, and I will talk about it later. We must get a good deal for the taxpayer and policyholders and, frankly, a better deal than the statement of principles. Therefore, insurance must be available and affordable, without adding to bills. We are not yet in a position to make an announcement that we have a value for money, deliverable solution and one that is legal within the constraints of state aid, but I can assure hon. Members that we are working extremely hard to achieve that.

[Mr Gibb]

The Minister has been assiduous on this issue, and we are looking forward to seeing him in Pagham in my constituency in late April. Will he be able to make an announcement on this issue before 30 June?

[Richard Benyon]

I hope that we will be able to do so, and I will give more details on that later. I am looking forward to meeting my hon. Friend’s constituents and to understanding the daily threats that they live with.

Let us be clear: the availability and affordability of home insurance in flood-risk areas beyond the expiry of the statement of principles on 30 June are vital for hon. Members and the Government, and I firmly support the motion.

Flooding has a significant and long-lasting impact on local communities, which I have seen first hand in my constituency. The availability of home insurance in flood-risk areas provides important financial protection and peace of mind to such communities. The Government remain committed to ongoing negotiations with the insurance industry and others on what replaces the statement of principles agreement. We want to find a solution that ensures the availability and affordability of flood insurance and will endeavour to continue working with the industry towards that goal.