Anne McTaggart MSP | Glasgow MSP Calls for Protection for Homeowners against Flood Damage | IWC2
Anne McTaggart MSP has stated that thousands of people across Scotland are suffering from the decision by the Association of British Insurers not to renew the Statement of Principles on Flood Insurance, after the agreement expires in June of this year.
The failure to reach an agreement will mean that the cost of household insurance will be likely to rise substantially for ordinary homeowners. This will result in many families being priced out of an insurance policy that would provide protection for the single biggest investment in their lives; their home.
This is a huge issue for thousands of households throughout Scotland. We know that 4 out of the 5 wettest years on record have been since 2000. The Scottish Environmental Protection Agency has recognised that “Flooding is the greatest natural threat facing the UK” and have estimated that approximately 112,000 residential homes and 14,000 businesses across Scotland are at serious risk of flooding.
1 out of every 22 homes and 1 out of every 14 businesses in Scotland are presently considered to be at risk from coastal, river or surface flooding. This means that a huge number of homes and business throughout the country face dramatic increases in the cost of insuring their homes if a workable solution is not found in the near future, through negotiation between the insurance industry and government.
Anne McTaggart MSP said:
“I have been approached by a number of constituents that are extremely concerned about the hesitancy of insurance companies to provide cover against flood damage to their homes.
“As a result, policy holders in high risk areas have been left with no assurance that they will be able to secure affordable insurance policies to cover their assets against natural disasters.
“Much more collaboration is necessary between local authorities, government and the insurance industry to bring about a resolution that benefits homeowners in areas most at risk of flooding.”