Cornhill and NU pledge to continue flood cover

Several leading insurers have announced they will continue to offer insurance cover to people living in flood-prone areas.

In separate statements designed to offer assurance to policyholders in flood risk areas, Churchill and Norwich Union said they will continue to cover policyholders once the industry's deal with the government expires.

The news follows this morning's announcement by the ABI of the industry's new Statement of Principles. Some observers had expressed concern over future cover for flood-prone areas after the ABI statement.

Churchill Managing Director John O'Roarke said:
"Householders deserve reassurance from their insurers that they will continue to cover them for flood damage. At Churchill we fully intend to continue offering cover to all our home policyholders and to set premiums at affordable
levels.

"We will also continue to work with the Government and the Environment Agency to ensure that improved flood protection methods are implemented as soon as possible."

Head of public affairs at Norwich Union Nick Pierson said: "These new principles bring much needed confidence to those homeowners and small businesses affected by flooding. They also address the concerns of those in high-risk areas, who wish to sell their properties.

"Flooding remains a key issue for homeowners, small businesses and insurers, with a ten-fold increase in the risk of flood predicted over the next century. We'll continue to work with the Government in tackling flooding to ensure that as many properties as possible are protected in future."