OWNERS of top flood risk properties in the area may struggle to insure their homes and businesses from next year, a report claims.
The Association of British Insurers warns that such homes may be uninsurable unless a solution is found when an existing agreement with the government finishes in 2013.
According to the Environment Agency, the Mablethorpe and Sutton on Sea parish has 6,558 homes and 336 business premises at risk. Of these 232 are in the highest ‘significant risk’, meaning there is a more than one in 75 chance of flooding in any year.
The ABI’s director general, Otto Thoresen, said that ‘time was running out’ and ‘the ball was in the Government’s court’ to ensure protection.
“Insurers want to make sure every home has access to affordable insurance, should the worst happen,” he said. “And we’re concerned that those people most at risk will lose out unless the Government considers a safety net.”
The agreement began in 2000 as a short-term measure, requiring insurers to offer cover to existing customers including those at high risk. Insurers claim that those in low risk areas are unfairly subsidising the high risk residents under the current model.
East Lindsey District Council’s portfolio holder for the economy, Coun Craig Leyland, said: “It is vitally important that flood insurance remains widely available and we’d urge the ABI and government to reach an agreement on a way forward.
“Both parties must recognise that the Lincolnshire coast has areas of significant deprivation and local people should be able to access reasonable priced policies for their homes.”
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