Double worry for flood victims

Once again the news is all about floods. Most of the country has been affected including the North Wales City of St. Asaph which is not far from Liverpool –

http://www.guardian.co.uk/uk/2012/nov/27/north-wales-river-flood-defences

These unfortunate residents have had to evacuate their homes and lost thousands in damaged or ruined possessions. Never have they been more in need of good insurance cover. The last news they need to hear is that they could have difficulties getting insurance in the future just because of where they happen to live.

Following floods in 2008 the insurance industry agreed with the government to renew cover albeit at a high cost. That agreement is coming to an end and today we hear that talks between the Association of British Insurers (ABI) and the Government have stalled –

http://www.guardian.co.uk/money/2012/nov/26/flood-insurance-talks-reach-crisis-point

This means that the flood victims could find that future insurance premiums will be too steep to afford or simply unavailable. There cannot be anything worse than losing your home and possessions and then having to face the extra worry about whether you will have any protection if the same thing happens again.

This breakdown in talks comes as a bit of a surprise.

When it comes to slashing the rights of ordinary people to bring claims for compensation, the Government and the ABI seem to work in perfect harmony –

http://thestevecornforthblog.blogspot.co.uk/2012/11/justice-for-ordinary-people-another.html

But when it comes to protecting the rights of ordinary people to insurance following a disaster the whole thing grinds to a halt.

Of course, there will be those who will say that it is the victims fault for living there, and that they should move. That is much easier said than done. It has never been harder to sell properties and these houses will be virtually unsellable. In the meantime these residents are stuck where they are. The government and the industry should do all they can to sort out this mess.

The insurers will be saving a fortune as a result of the massive cuts in the right to bring motor claims. How about some of that going to flood victims rather than shareholders?

www.eadsolicitors.co.uk