Owners of flood-risk homes are facing huge and unaffordable rises in the cost of cover despite an agreement between the government and insurers to limit premium hikes.
Campaigners say those affected should write to their MPs to ensure their voices are heard before a new agreement is hammered out next year.
Labour MP for Hull North, Diana Johnson, said earlier this month that some of her constituents in areas with a high risk of flooding had been refused cover altogether by insurers.
Others have been quoted more than £1,000 for annual buildings insurance, with excesses – the amount that the policyholder would have to pay on each claim – rising to £3,000 and in one case £6,000.
Johnson told the BBC: “As long as the government is committed to providing money for flood defences then the insurance industry should take their responsibility seriously as well and provide reasonable cover for people in Hull at a reasonable cost.”
The current agreement
The current agreement between government and the insurance industry says insurers should continue to offer cover to existing customers as long as the government maintains the country’s flood defences.
This is the existing arrangement between the Department for the Environment, Food and Rural Affairs (DEFRA) and the Association of British Insurers (ABI).
It is known as the Statement of Principles on the Provision of Flood Insurance.
This deal is due to end in 2013 but a new agreement is currently being negotiated and is scheduled to be unveiled in the spring of 2012.
But Heather Shepherd from the National Flood Forum (NFF) says: “The current arrangement was really nothing more than a gentleman’s agreement to start with.
"We are aware that it has been flouted on many occasions and many homeowners have been refused cover already.”
Make your voice heard
Shepherd says that anyone who is having difficulty getting insurance due to flood risk in their area should contact the NFF, which provides advice to individuals and communities in dealing with actual and potential flooding.
“We don’t want to see anyone without cover and we will do what we can to signpost people to potential providers,” she says.
“I would also advise writing to your local MP about any problems you are facing. The more that is said to government about this issue while a new agreement is being negotiated, the better.”
Shepherd also criticised the fact that homeowners who invest in flood defences for their own properties are not always seeing their insurance premiums cut as a result.
“This was something the industry insisted would happen, but we haven’t seen much evidence of it.”
What do insurers say?
A spokesman for the ABI says: “Insurers remain determined to ensure that flood insurance remains as widely available and as competitively priced as possible.
"The UK is one of the few countries in the world where flood insurance is an integral part of property insurance and insurers want this to continue.”
But if budget cuts mean the government can no longer maintain flood defences, this could have a knock-on effect on premiums.
“We recognise that the government needs to tackle the budget deficit, but we need to see evidence of where flood management investment is reducing the risk,” the spokesman added.
“Insurers recognise that millions of homeowners and businesses rely on the protection given by flood insurance and are determined that this cover remains as widely available and as competitively priced as possible after the Statement of Principles ends in mid-2013.
“For this to happen we need to ensure that the government commits to targeting investment in flood-reduction measures where it is most urgently needed and ensuring that the planning process discourages developments in high-flood-risk areas.
"These discussions continue.”
In the meantime, the best way to ensure you're not paying over the odds for your cover is to compare home insurance policies with an accredited comparison site, such as Confused.com.
