FOR IMMEDIATE RELEASE - 31ST OCTOBER 2008
The British Insurance Brokers’ Association (BIBA) has called on the Government to work closely with the insurance industry to protect households and businesses across the UK from flooding.
In its response to the Department for Environment, Food and Rural Affairs (DEFRA) consultation into flood protection for homes and businesses, BIBA has called for:
· free flood surveys for homes and businesses in high-risk flood-zones – not limited to low-income families;
· the Government to make it compulsory to carry out resilient repair work on high-risk properties;
· a VAT exemption for all flood repair work to encourage all home-owners and businesses to take the necessary steps to protect their property;
· the Government to develop updated and detailed flood-maps with the insurance industry in order to gain a better picture of risks to UK homes and businesses;
· insurers to offer discounts or improved terms and conditions for responsible property owners who act to reduce flood risk.
BIBA believes that the Government’s plans should focus primarily on homes and small businesses in high-risk flood-zones.
Commenting on the proposals, Graeme Trudgill, BIBA Technical and Corporate Affairs Executive said: “We support the Government’s plans but want to ensure that flood prevention is the priority. We don’t want to see money washed away fixing the effects - let’s focus on the causes.
“It is in a property owner’s interest to plan for the long-term but this can be expensive. That’s why we are calling on the Government to provide VAT exemptions for responsible home-owners and businesses who invest to protect their property.
“We will also be working closely with the insurance industry to seek discounts and improved terms for those who take the appropriate steps to prevent flooding.”
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Notes to editors:
1. For further information please contact Leighann Burtrand, BIBA Communications Manager, on 020 7397 0223 or Graeme Trudgill, BIBA Technical and Corporate Affairs Executive on 020 7397 0218.
2. Public authorities’ clause explanation
"Most commercial property insurance policies contain a Public Authorities or EU Clause which extends cover to include any additional cost incurred by the Insured in reinstating the damaged property in such a way as to comply with Public or European authority requirements, subject to the sum insured being adequate and with the prior consent of insurers”. Therefore, if the Building Regulations or other legislation or bye-laws are amended to require the owner to incorporate flood resilience in the reinstatement or repair of any property, say with a greater than one in 75 year chance of flooding, BIBA believes that insurance should provide cover for this additional cost. The need for this protection applies equally to all property owners whether insured under personal or commercial insurance policies.
3. About the British Insurance Brokers' Association
BIBA is the UK’s leading broker and intermediary organisation, representing professional insurance brokers and intermediaries.
BIBA is committed to playing a central role in the industry, from providing business backing and training for British brokers through to high-level industry representation. We also actively participate in helping the industry and its customers deal with some of the major insurance issues of the day.
BIBA members operate to a very high standard of customer service with the aim of ensuring peace of mind, security, financial protection and the professional advice required.
Authoritative, independent and impartial, BIBA, a not for profit organisation, is uniquely relied upon by brokers and the consumer.
To find your nearest BIBA broker visit the ‘Find A Broker' section of the BIBA website, www.biba.org.uk or call BIBA’s consumer helpline on 0870 950 1790
4. BIBA’s full response to DEFRA can be viewed here
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