Insurers meet Government for flood clear-up summit

Insurance leaders will meet with Government Ministers today to discuss the industry’s response to the recent floods in the South West and Thames Valley at a Downing Street summit today.

Ministers are likely to call on the industry to ensure that floods claims are processed as soon as possible.

Companies representing 60% of the insurance market are due to report to ministers on what they have done to hire extra loss adjusters, or help customers access drying equipment.

Speaking before the summit, Flooding Minister Dan Rogerson said: “We all need to pull together to help those areas badly affected by the floods, so they can get back on their feet as quickly as possible.

“Dealing with the aftermath will take time and requires a stepped-up national effort.

“Insurers have a critical role to play and by working closely together we will continue to ensure that the help and support which people need is available.”

The summit will be held amid concerns that some homeowners who pay the top rate of council tax, currently excluded from the government’s new flood insurance scheme, are likely to see their annual premiums rise by £1,000 next year.

Concerns have been raised that the new "Flood Re" scheme, which provides insurance subsidies in high-risk flood areas, is too restrictive leaving out too many who would be affected flood insurance risks.

Speaking in Exeter last week, Labour leader Ed Milliband spoke of his party’s concerns surrounding the scheme, he said: “I’m worried that there are holes in the Flood Re scheme, that there are holes for people who’ve had new homes constructed, there holes when it comes to the breadth of the properties concerned.

“In other words it’s just a very narrow number of properties that are concerned.”

Currently businesses and rental properties as well as homes built after 2009 or on Council tax Band H are excluded from the scheme leading to fears they may see their insurance costs rise to unaffordable levels.

However the Association of British Insurers (ABI) has said that they estimate around 350,000 homes will be covered by the scheme, while fewer than 7,000 homes will be excluded.

The insurance industry also says it made over £14m of emergency payments to households and businesses since the floods began, with the payments typically between £500 and £3,000 for households.

The ABI also said £24m had been spent on emergency accommodation for those displaced by the storms and floods such as those evacuated from their homes in Dawlish.

There has also been over 5,000 loss adjuster visits since 23 December 2013 and over 2,000 loss adjusters ready and waiting for when the waters go down.

Last week in an open letter to customers the industry body laid out insurers  commitments to those affected by the floods. Among other commitments the industry said it would build and pay for flood uild and pay for Flood Re and Send loss adjusters to flooded homes and businesses as soon as is practically possible.

With this week is set to be drier and brighter than previous few weeks with no severe weather warnings in place, work to repair flood damaged properties may get underway without further disruption.

However large areas of standing water are still in place around much of the region while pumping operations get underway.