Residents of many villages that thought they may no longer be able to find coverage now have it guaranteed.
The people living in a number of villages throughout the United Kingdom, such as those in the area of Worcester and its surrounds, are now breathing a sigh of relief as they hear that their flood insurance will be guaranteed.
The coverage was on extremely shaky grounds as the government and insurers in the country negotiated.
The negotiations were not looking very promising for some time, but the government and the flood insurance companies were finally able to secure a deal. Homeowners were beginning to fear that they would need to spend thousands on extremely highly priced policies – if they could find coverage at all.
This has made sure that flood insurance would be available upon the expiry of the old deal.
The flood insurance deal has now been made between the Association of British Insurers (ABI) and the UK government. This new agreement will assist in making sure that homeowners will be able to afford coverage that they had previously been enjoying under the old Statement of Principles agreement which expired with the close of July.
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The flooding that has been experienced by businesses and homeowners in regions of the U.K. such as Worcestershire has been extremely disruptive over the past few years, particularly in 2007, when the floods during the summer caused extremely high water levels to cause damage to many homes and business properties.
The new agreement will place a cap on premiums for flood insurance, connecting them to council tax bands so that residents of the area will be able to determine exactly the maximum amount that they will need to pay. All of the homeowners insurers in the United Kingdom will be required to pay a certain amount into a pool that will build a fund that can then be used for the payment of claims made by the individuals who are living on high risk properties.
The current Statement of Principles will continue for now – despite the fact that this flood insurance agreement officially expires in July – in order to hold things over until the new Flood Re system is launched in 2015.