§ Mr. WatersonTo ask the Secretary of State for Environment, Food and Rural Affairs in which areas of the country flood insurance cover is not available; and if she will make a statement. [76281]
§ Mr. MorleyThe Association of British Insurers have stated that all properties defended to at least a standard of 1.3 per cent. (1 in 75) annual probability, should be able to obtain cover. Properties currently protected to a lesser extent, but where defences to meet the above standard are planned for the next 5 years, should also be able to get cover. The ABI have assured us that undefended properties or "exceptional cases" will be assessed on an individual basis and consideration given as to whether some form of insurance cover can be given. Many of the properties which the ABI estimate will not be able to obtain cover, have never have been able to get flood insurance.
The decision to move away from the existing agreement means that, in the majority of cases, people can and should shop around for the best deal. 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. It is impossible to make a generalisation about areas where flood cover will be unavailable as in a competitive market as what is unacceptable to one company may well be acceptable to another.