The Market

ABI: "Meet Our Demands or 500,000 Lose Flood Cover"

The ABI is to issue the government a harsh ultimatum in the autumn: meet its list of flood defence demands or 500,000 homes in high risk zones could lose cover.

If the government does not take action, those homes could become uninsurable.

What the ABI wants the government to do

• Cease building properties on flood plains
• Assist in making existing homes in high-risk areas more flood resistant
• Speed up delivery of £800 million flood spending from 2010/2011 to April 2008
• Increase flood spending to £1 billion by 2010/2011
• Bring existing flood defences, such as dykes and dams, up to standard
• Invest £8 billion in east coast flood defences and risk management over the next 25 years.

The statement of principles is an agreement between the ABI and Defra that insurers will cover existing properties in flood plains as long as the government offers adequate flood defence and risk management.

Flood Repairs

Guidance to help local authorities in Yorkshire and Humberside apply for funds to repair flood damaged roads has been published by the Department for Transport. In July 2007, £3 million of funding was announced by the DfT to repair roads in the north of England after the summer flooding. The Guidance will advise councils on how to put in a claim to be eligible for funding.

January 2008