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RESISTANCE AND RESILIENCE
We believe that too much emphasis is being put on resistance and resilience at the government summit on flood insurance.
- There will be inadequate financial incentive in reduced premiums to encourage householders to invest in measures unless the market moves to full risk-based premiums.
- 95% of homes in flood risk areas are semi-detached, terraced, flats or apartments. The adjoining property owner(s) would have to employ similar resistant measures for them to be effective.
- Resilience measures are most cost effectively installed in existing buildings after they have been flooded. Currently this is considered betterment by the insurance companies and the cost has to be borne by the policyholder.
- Resistant products are only suitable for flash floods. If the external flood level is likely to be over a long period of time water will inevitably enter the property.
We are very concerned that if the government fails to lead then the insurance industry will move to risk-based premiums and the incentive to purchase resistance and resilience will be a refusal to cover.
The report is a supporting document to our Morpeth Model for the furure of flood insurance. To open our report in a new page click on the image.
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