Government must prevent future flooding
by Kay Murchie
UK insurers are being faced with bills of around £1.5 billion following the floods in June. Approximately 31,000 homes and 7,000 businesses have been affected, primarily in the north of England and the Midlands.
Agents from the insurance industry have met with government ministers to discuss how to deal with the cost of claims. According to the Association of British Insurers (ABI), the meeting with ministers was positive and ABI is now encouraging the government to look to the future and urge the construction industry build new homes that are safe from flooding. In addition, local councils are urged to improve drainage systems immediately.
The government has vowed to increase flood defence spending from £600 million currently to £800 million a year by 2011.
The insurance industry is urging the government to carry out its side of the bargain or people at the risk of flooding may be denied insurance cover.
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