More families could be left without homeowners coverage after another week of flooding.
The latest insurance news from Scotland has shown that the industry and the country’s government are struggling to come up with a deal that will cover the risk of flooding for many homeowners across the country, which could mean that a larger number of households will lose their coverage.
The homes that are located within areas of a heightened risk of flooding are currently protected.
That protection comes in the form of an agreement which has been making insurance news to a growing extent as its expiration date next summer looms ever closer. The agreement is between the insurers and the government of the United Kingdom. Those two entities have been negotiating the extension or replacement of the current agreement, but have been unsuccessful so far.
If an agreement does not make insurance news in time, approximately 5,000 homes will lose their coverage.
According to the Association of British Insurers, if the agreement is neither replaced nor extended in time, these homes will no longer have access to coverage that they can afford. This insurance news is even more threatening considering the recent flooding that has occurred across the country over the last few months and years.
In fact, the areas of Argyll and Bute, Dumfries and Galloway, Ayrshire, Aberdeenshire, the borders, central Scotland, and Tayside are all still under flood alerts from the Scottish Environmental Protection Agency.
Within the areas that have already faced this catastrophic flood insurance news, many have been affected very recently. In Comrie, over 100 homes were flooded only a week ago. This pushed the Perth and Kinross Council to drive their flood management plans forward within their village.
The current insurance news is that the insurers remain responsible for making sure that coverage is available to homeowners who have previously made flood related claims. Though the policies may involve higher premiums and excess, these homes cannot be refused protection, outright, according to the current “statement of principles” agreement in the country. The Association of British Insurers is trying to lift the impasse by suggesting that a cap on annual premiums be put into place.