Good News For Customers As Agreement On Flooding Insurance Reached

22nd December 2008

A joint agreement on flooding reached between the Scottish Government and the insurance industry will give homes and businesses greater protection Environment Minister Michael Russell said today.

The Scottish Government and the Association of British Insurers (ABI) have agreed to work together to minimise the flood risks and to help people quicker when flooding occurs.

Mr Russell said: "While flood defences, flood warnings and other policies can reduce the risk from flooding, these risks can never be completely eliminated.

"This historic agreement - the first of its kind between the ABI and a Scottish Government - enables households and small businesses to plan for and minimise the financial costs of flooding.

"Insurance companies will provide effective and efficient claims services and repair teams when flooding occurs whilst the Government will put in place various policies to promote flood prevention and mitigation schemes.

"This confirms our shared commitment to work together to provide a long-term solution that will enable flood insurance to remain as affordable and widely available as possible."

The Scottish Government has agreed to undertake a variety of measures including:

* improving understanding and awareness of flood risk
* developing a long-term strategy (of over 25 years) to reduce flood risk and encourage action to mitigate and minimise the risks and costs of flooding
* ensuring the planning system prevents inappropriate development in flood-risk areas
* ensuring any essential new development in medium to high-risk areas is flood resistant

Actions the ABI have agreed to include:

* Continue to make flood insurance available for homes and small businesses and promote access to insurance for low-income households
* encourage customers to reinstate flood damaged property in ways which makes it more resilient to flooding.

Justin Jacobs, the ABI's Assistant Director of Property Insurance said: "Today's agreement is good news for Scottish customers. The Scottish Government rightly recognises that a long-term flood strategy, backed by adequate resources and funding, is the best way to manage the growing flood threat.

"We look forward to continuing to work with them to ensure that these measures are implemented so that flood protection relied upon by homeowners and businesses remains widely available."

Details of the agreement and the joint statement are available on the website at: http://www.scotland.gov.uk/Topics/Environment/Water/Flooding/Insurance