With more heavy rain causing flooding across the UK and still no agreement between the insurance industry and the Government on who should shoulder the risk, a Cornish company might have come up with a solution.
Some 200,000 UK properties could find insurance cover unaffordable if a new deal isn’t agreed when the protective insurance deal – the ‘statement of principles’ – goes out of date at the end of June.
A series of select committees has been held to work out a way forward, with the latest last week.
During the session, local MP George Eustice raised a suggestion from Redruth-based Richfords Fire & Flood, which would allow for a pot of money to be built up in advance from a levy on property insurance, and then accessed at the claims stage.
Further meetings are now being organised between Richfords, insurers and MPs to give full details on the solution.
Richfords Fire & Flood owner, Steven Richford, said: “Time is getting short now on finding an answer that can be agreed by the Association of British Insurers as well as the Government.
“We believe that our compromise will give a good level of protection to the public, whilst meaning that the risk is shared to some degree. What we are keen to avoid is a situation where the current deal goes out of date and home-owners are left without any cover at all.”
