Morpeth flood victims face higher insurance premiums Significant Auto Insurance

September 13th, 2010 by Mikayla Barney

Morpeth flood victims face higher insurance premiums

A town which was devastated by flooding two years ago is calling for the creation of a national fund to deal with the creeping threat of “insurance blight” affecting flood-risk communities.

Campaigners in Morpeth, whose town centre was left under water in September 2008, claim homeowners and businesses have subsequently been hit by big increases in the cost of insuring themselves against a repeat of the catastrophe. In some cases, premiums are said to have doubled or trebled and there have been instances of insurance policy excesses of over 5,000 being demanded.

A potential solution has been proposed by a working group, involving Morpeth Town Council, the Morpeth Flood Action Group and the towns chamber of trade, to create a special national fund which would ensure that flood insurance was available to all and at a reasonably affordable cost.

The fund, which would be paid for by a levy on annual home insurance premiums collected by insurance companies, would be run by a new Flood Reinsurance Agency, guaranteed by the government. The fund would handle liability for flood insurance, so private insurance companies wouldnt have to differentiate between properties based on flood risk when assessing premiums and excesses.

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