§ Mr. LoveTo ask the Secretary of State for Environment, Food and Rural Affairs what advice her Department is issuing to householders who face repeated flooding on(a) protecting and (b) insuring their properties; and if she will make a statement. [16452]
§ Mr. MorleyGuidance on protecting properties is available from the Environment Agency's Floodline Service and on the agency's website.
As regards flood insurance, it is clearly in householders' interests to ensure that their policies provide suitable cover against flooding. The Government maintain close links with the insurance industry to help ensure continued availability of affordable flood cover. Together with the flood defence operating authorities, we are reducing the risk of flooding and are communicating this to the industry. However, it must be recognised that insurance companies need to take a commercial decision as to what risk they will cover and on what terms. Also, the insurance industry is a competitive one and customers may need to shop around to obtain the best deal.
The agreement among Association of British Insurers (ABI) member companies is that they will continue to provide flood cover, except in exceptional circumstances, for domestic properties and small businesses which they currently insure, during 2001 and 2002. Cases where there is an alleged breach of this agreement have been referred by DEFRA to the ABI for investigation.
My hon. Friend the Economic Secretary to the Treasury and I met the ABI on 5 September to discuss our mutual aim of ensuring that affordable flood insurance cover continues to be generally available after December 2002. Further discussions between official have taken place.
In relation to the concerns expressed by the ABI, the Government are acting to reduce flood risk, through substantial increases in investment in flood and coastal defence (which now totals over £400 million a year). Flood defences are being repaired, renewed, maintained and improved. Flood warning arrangements are continually being improved. The Government have issued strengthened guidance to local planning authorities on 206W control of development in flood risk areas, and are reviewing the financial and institutional arrangements under which the flood defence service is delivered.
§ Mr. LoveTo ask the Secretary of State for Environment, Food and Rural Affairs what additional funding she will make available to assist local authorities with the cost of sandbags, water pumps and other items in relation to flooding and flood defences in the next 12 months; and if she will make a statement. [16451]
§ Mr. MorleyThe flood defence service is provided by the Environment Agency, internal drainage boards and local authorities. It is funded by a combination of grant from DEFRA towards approved capital schemes and Department for Transport, Local Government and the Regions funding delivered through the local government financial mechanisms.
Total Government funding is set to increase from some £377 million this year to £394 million in 2002–03. The great majority of this funding is used to provide new flood defences, maintain and improve existing defences and watercourses, and provide flood warning schemes, though such funding may also be used to provide additional sandbags and pumping equipment.
§ Miss McIntoshTo ask the Secretary of State for Environment, Food and Rural Affairs (1) what representations she has received from owners of properties that were flooded last year for the first time and have been designated by insurance companies as at risk; [16568]
(2) what measures she has taken to assist homeowners whose houses are not on flood plains but who have been flooded in the last year who are required to pay the same insurance premiums as those homeowners who are; [16567]
(3) if she will encourage insurance companies not to charge excessive premiums to homeowners who possess properties at risk from flooding. [16569]
§ Mr. MorleyThe Government maintain close links with the insurance industry to help continued availability of affordable flood cover. Together with the flood defence operating authorities, we are reducing the risk of flooding and are communicating this to the industry. However, it must be recognised that insurance companies need to take a commercial decision as to what risk they will cover and on what terms. Also, the insurance industry is a competitive one and customers may need to shop around to obtain the best deal.
The agreement among Association of British Insurers (ABI) member companies is that they will continue to provide flood cover, except in exceptional circumstances, for domestic properties and small businesses which they currently insure, during 2001 and 2002. Cases where there is an alleged breach of this agreement have been referred by DEFRA to the ABI for investigation.
My hon. Friend the Economic Secretary to the Treasury and I met the ABI on 5 September to discuss our mutual aim of ensuring that affordable flood insurance cover continues to be generally available after December 2002. Further discussions between officials have taken place.
In relation to the concerns expressed by the ABI, the Government are acting to reduce flood risk, through substantial increases in investment in flood and coastal defence (which now totals over £400 million a year). 207W Flood defences are being repaired, renewed, maintained and improved. Flood warning arrangements are continually being improved. The Government have issued strengthened guidance to local planning authorities on control of development in flood risk areas, and are reviewing the financial and institutional arrangements under which the flood defence service is delivered.