Pool firm helps find solution over flooding insurance

 

A stalemate between the government and the Association of British Insurers could be brought to an end with help a Pool company.

MP for Camborne and Redruth, George Eustice, has invited Richfords Fire & Flood to submit its ideas to a parliamentary select committee.

The panel of politicians is trying to make sure the safety-net allowing people in flood-prone areas to get cover continues after a legal agreement called ‘The Statement of Principles’ goes out of date at the end of June.

Last year, Nick Starling, the director of the Association of British Insurers, described the talks as being at "crisis point". However, South West fire and flood recovery specialists, Richfords Fire and Flood, have witnessed at first hand the crisis facing many homeowners who fear the sound of those first spots of rain.

Steven Richford, owner of Richfords, said: "Many of our customers, who we have helped recover from flooding, are becoming increasingly concerned that their homes could become worthless and unsalable if the ‘Statement of Principles’ lapses. Without insurance on the building, most people will be unable to mortgage their property, adding to the housing shortage."

MP for Camborne & Redruth, George Eustice, said: "It is great to see such a leading player in field of fire and flood recovery operations based here in Camborne and I was really impressed by the great work that Richfords do during my recent visit to meet some of their team.”

"Making sure that homes at risk of flooding are able to get affordable access to home insurance is a major challenge and the environment committee of which I am a member has launched an inquiry into the issue. Richfords have some interesting proposals which I look forward to discussing as part of that inquiry."

The deadline for a decision on the Statement of Principles is 30th June.

Comments (4)

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12:13pm Sun 24 Feb 13

Wave says...

I don't think the homes should be insured, until they are no longer at significant risk.
Either through a community protection scheme paid for by the home owners or
the abandonment of the houses altogether if no solution is found.
If I purchased a car that was likely to crash expensively within the next 5 years that would be my own fault/risk for buying it.
Maybe there are situations where people were miss-sold the properties, that's on a case by case basis. Where they might be able to claim compensation.

I don't think insurance is or should be a human right. Although maybe that is worthy of debate and I might change my view.
But recklessly buying a home could be seen as a criminal offence and fraud if it meant the owner was unreasonably supported by the taxpayer/insurance companies if they are forced by law to insure a dangerous home.
I don't think the homes should be insured, until they are no longer at significant risk. Either through a community protection scheme paid for by the home owners or the abandonment of the houses altogether if no solution is found. If I purchased a car that was likely to crash expensively within the next 5 years that would be my own fault/risk for buying it. Maybe there are situations where people were miss-sold the properties, that's on a case by case basis. Where they might be able to claim compensation. I don't think insurance is or should be a human right. Although maybe that is worthy of debate and I might change my view. But recklessly buying a home could be seen as a criminal offence and fraud if it meant the owner was unreasonably supported by the taxpayer/insurance companies if they are forced by law to insure a dangerous home. Wave
  • Score: 0

2:03pm Sun 24 Feb 13

Gillian Zella Martin 09 says...

Very interesting view point Wave, and what about a property disappearing down a mine shaft, I had a mining survey done which shows no risk, however, there are uncharted mines all over Cornwall.
Very interesting view point Wave, and what about a property disappearing down a mine shaft, I had a mining survey done which shows no risk, however, there are uncharted mines all over Cornwall. Gillian Zella Martin 09
  • Score: 0

2:07pm Sun 24 Feb 13

Wave says...

That would be an issue if insurance companies are saying they do not cover that event.
A survey is the best you can do I suppose.
That would be an issue if insurance companies are saying they do not cover that event. A survey is the best you can do I suppose. Wave
  • Score: 0

3:19pm Sun 24 Feb 13

Gillian Zella Martin 09 says...

I might find it difficult to locate my insurance policy whilst sitting at the bottom of a mineshaft anyway I suppose.
I might find it difficult to locate my insurance policy whilst sitting at the bottom of a mineshaft anyway I suppose. Gillian Zella Martin 09
  • Score: 0

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