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Half hit by flooding still homeless

Half hit by flooding still homeless

Thursday, 14 February 2008 12:00 AM

Nearly half of the 15,000 households adversely affected by flooding in 2007 remain uninhabitable, some seven months after the event.

According to the Department for Environment, Food and Rural Affairs (Defra), some 7,000 families remain in temporary accommodation, as work continues to repair the damage.

The flooding - which devastated parts Gloucestershire, Worcestershire, Oxfordshire, Berkshire and south Wales during June and July last year - caused around £2 billion worth of damage, according to some estimates.

A further 25 per cent of residents are expected to have returned to their homes by Easter.

To date the insurance industry has paid out a total of £1 billion worth of claims from the flooding - but there are concerns cover may be unavailable to residents living in the worst affected areas in the future.

In response floods recovery minister, John Healey, has been meeting with the Association of British Insurers (ABI) in an attempt to take stock of the continuing situation and ensure insurance will be available to those at risk in the future.

During the meeting the ABI and government formally confirmed a UK-wide review of its 'Statement of Principles' to ensure it is up to date and fit for purpose.

The government and the ABI have a common interest in ensuring flood cover remains as widely available as possible for the public.

The Statement of Principles commits insurers to continuing to offer flood insurance to existing customers where the flood risk is adequately managed.

However, following the major floods of summer 2007, and in light of the increasing number and extent of floods linked to climate change, the government and the insurance industry have begun work to undertake a fundamental review of the statement.

"The insurance industry played a major role in helping our country recover from the terrible floods of last summer and will pay out £3 billion compensation to affected customers," said Stephen Haddrill, director general of the ABI.

"Insurers want to continue to provide flood cover as standard to as many customers as possible. The statement can only continue if the government commits to addressing the lessons of last summer fully."