Summary
 At
the time of the October 2000 floods, none of us thought that we would
soon have another battle on our hands - to get insurance cover at reasonable
rates against any future flooding risks. Lewes Flood Action has
twice since then made representations to the Association of British Insurers
on behalf of people in Lewes who were flooded, asking them to encourage
insurance companies to continue to provide such insurance cover for householders
and small businesses on fair terms.
The insurers made an agreement with the government not to increase residential
flood insurance charges substantially during the two-year period ending
31 December 2002. At first they observed this, but it did not last.
In February 2003 the LFA insurance group distributed a questionnaire to
all properties damaged by the floods to ascertain what, if any, substantial
insurance problems people have experienced. The results were both
surprising and alarming. There were 254 responses. 18% of
these reported that they had been refused flood cover for buildings and/or
contents. 26% reported substantial increases in premiums and 14.5%
imposition of large excess charges. The numbers who have been refused
cover are particularly worrying . [See the full details of the survey
questionnaire and results].
We are now, since January 2003, in a new situation, and our task will
be to monitor what happens during the rest of this year as and when insurance
policies are renewed. We urge everybody who was flooded to complete
the Insurance Survey 2003 Questionnaire as soon as their renewal notice
is received.
The new situation is still unclear. The Association of British
Insurers has advised its members to continue cover in areas that have
firm plans for flood defences to a standard of at least 1:75 years risk
by the year 2007; the actual premiums will however "reflect
different degrees of risk". In areas of greater risk than this
or where there are no agreed plans for defences, insurers will "examine
the risks on a case by case basis and use their best efforts to continue
to provide cover". [see ABI
Statement of Principles]
The flood defence strategy for Lewes was announced in September 2002.
But in February 2003 the government failed to confirm this, saying that
it was not willing to consider funding the proposed Lewes defences until
further research was done and new proposals were submitted. The
only part of the plans being proceeded with at present is the Malling
Brooks cell defences. This means that residents and businesses in
most of the flood-affected areas of Lewes are likely to face difficulty
and added expense until such time as the statutory authorities agree a
full flood defence strategy because they remain at higher than 1:75 risk.
Although this remains an issue of considerable concern, it does not necessarily
mean that those in the high risk areas will not be able to get insurance,
as suggested in a slightly misleading leaflet distributed in the name
of LFA, but not endorsed by LFA, in March 03. Our survey has however
revealed a worryingly large proportion of individual cases where cover
has already been refused, and there is no reason to suppose that this
will not continue to be the case until insurers are satisfied that adequate
defences are planned for the town. In the meantime LFA is trying
to clarify the situation with the Association of British Insurers and
obtain assurances of fair treatment in all cases.
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