Insurers should not “hand-pick” the best risks: Local Government Association
A local government body has hit out at insurers and the government over the delay on finding an alternative to the Statement of Principles on flood insurance for homes.
The Local Government Association, which represents more than 350 councils, has claimed that “unfair and unaffordable” premiums could leave homeowners and local authorities with an £11bn bill.
The Statement is a contract under which insurers agreed to offer flood insurance as part of standard buildings and contents packages, provided the government spent money on flood defences.
It will expire in June next year, but the government has not announced plans for a replacement.
Earlier this month ABI property committee chairman and Ageas chief executive Barry Smith said he was frustrated at the government’s slow progress on the issue.
LGA environment and housing board member Clare Whelan said: “The insurance industry has a responsibility to help people manage risk and should not be allowed to hand pick low-risk homes while leaving those most in need high and dry.
“It is imperative that the insurance industry commits as soon as possible to providing affordable and fair insurance premiums once the current safety net agreement expires next year.”