Local MP Sheryll Murray has welcomed the news that Conservative Minister, Richard Benyon MP, has published the draft Flood Insurance clauses to the Water Bill. The purpose of these new clauses is to secure availability and affordability of home insurance in areas of high risk.
The Government explained, “We are publishing the clauses and accompanying commentary in draft form to inform public debate. The draft clauses reflect our working assumptions at this stage and are subject to further development in light of public consultation and discussion with key stakeholders.”
The Government said, “Our aim is to provide the legal framework for new arrangements following the expiry of the current voluntary agreement on flood insurance between Government and the insurance industry. The legal framework aims to establish: a) a levy-funded reinsurance pool for high risk households ( known as ‘Flood Re’), and b) reserve powers to regulate the insurance industry by requiring insurers to each insure a certain share of a list of high flood risk properties (known as the ‘Flood Insurance Obligation’). These fallback powers are needed in case Flood Re proves unworkable and if pricing in a free market proves to be unacceptable. This provision is intended to provide reassurance to households at risk that they will be able to secure affordable flood insurance in future, one way or another.”
Sheryll commented, “I have been pushing for a long time to get a workable solution for those in peril of flooding. I have seen right across South East Cornwall the devastation flooding can cause and I am keen the Government acts.
“I welcome the announcement by the Minister Richard Benyon MP and the fact that the Ministers are willing to listen further on this. People who want to comment can do so by the 20th September to flood.insurance@defra.gsi.gov.uk or by contacting my office. I want to make sure that this legislation is right and that t is fit for purpose.”
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Contact: Sheryll Murray MP 01579 344428
Pictured: Sheryll is pictured in Lostwithiel during flooding
Attached: Government documentation on the clauses.