Flood Insurance

Debate between Robert Smith and Nick Gibb

Tuesday 26th March 2013 Commons Chamber

[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.