Written question asked by Baroness McIntosh of Pickering (Conservative) on Tuesday, 14 March 2006, in the House of Commons. It was due for an answer on Thursday, 16 March 2006. It was answered by Elliot Morley (Labour) on Thursday, 16 March 2006 on behalf of the Department for Environment, Food and Rural Affairs.

Flooding

Question: (2) what steps she plans to take to ensure that (a) commercial and (b) domestic properties in areas prone to flooding can obtain insurance cover;

Answer: The Government continue to work with the Association of British Insurers (ABI) with a mutual aim of continuing affordable domestic flood cover into the future. The ABI has agreed and published on their website a ““Statement of Principles”” which sets out the commitments made by the insurance industry to maintain flood insurance cover for the majority of domestic and small business properties at risk in association with commitments made by the Government on flood risk management.Decisions by insurers are risk-based and unfortunately the industry is not able to provide insurance cover to 100 per cent. of properties at risk. Representations have been received relating to cases where people have experienced problems in obtaining insurance cover. However, the number of such representations is in line with our understanding that cover has continued to be available at competitive cost to the vast majority of properties in areas at risk of flooding.Policy on insurance in general is a matter for Treasury. Officials from Treasury are included in our discussions with ABI but otherwise I have had no specific discussions on the matter with either the Chancellor or the Secretary of State for Trade and Industry.

Secondary information