Insurers to stop flood cover?
Updated on 10 October 2007
Insurance companies have warned they may not be able to cover homeowners in high-risk flood areas.
The warning came as the head of the Environment Agency appeared before a committee of MPs to give evidence about its handling of this summers floods.
Baroness Young faced questions about whether the agency needs a complete overhaul.
The grilling came the day after the Environment Agency were promised more money for flood defences.
But the insurance industry said without more money sooner homes could lose flood cover in future.
A report into the costs of June and July's floods seen by Channel 4 News shows the majority of claims could not have been prevented by better defences.
What happened this summer was not just due to inadequate flood defences: it was about flash flooding where heavy rain fails to drain away.
The committee heard flash flooding is not something the Environment Agency deals with becasue the government has not asked them to.
The flood risk to Britain is a combination of tidal surges from the sea, rivers breaking their banks, and flash floods from rainfall. So who is responsible for managing this overall in flood risk?
In England and Wales, if it is flooding from rivers, the Environment Agency is responsible.
If it is flooding from the sea, they have a role, but defences are organised by Local Authorities.
And if critical infrastructure is under threat, utility companies themselves protect it.
Predicting flash flooding is the job of the Met Office. Once the rain has fallen, local authority drains have to carry it away.
Planning for a flood emergency is overseen by the Cabinet Office and dealing with the emergency itself is the job of the Police and the Fire Service.
What's at risk?
- 5,000 "critical infrastructure sites"
- 2200 power stations and substations
- 57 per cent sewerage works
- 41 per cent water treatment
- 41 per cent railway lines
It says 5,000 critical infrastructure sites are at risk of flooding. Including more than 2000 power stations. 57 per cent of exposed sewerage works are undefended. Along with 41 per cent of water treatment sites and railway lines.
If the insurance industry carries through its warning then Britain would be forced into a situation common in America and Europe - where insurance and extra compensation costing billions of pounds - would be shouldered by the taxpayer.
