Wednesday, March 07, 2012
Of June and High Water
British homeowners have been told they'll have to fend for themselves come June when their government's agreement with Brit insurers for provision of flood coverage lapses.
Insurers are reacting to what they consider a refusal by the austerity-obsessed Cameron government to honour its obligations to improve flood defences.
The agreement, known as the Statement of Principles, is crucial for those households that have already been flooded as it means that insurers will continue to provide cover for existing customers, albeit at a higher premium, as long as the government continues to improve flood defences.
However, following a substantial investment in flood defences by the Labour government, the current government has cut funding.
The insurance industry believes the government has now reneged on its part of the deal and consequently it does not want to continue with the agreement, a situation that leaves thousands of households at risk of becoming uninsured by next summer.
This is simply an inevitable aspect of climate change. Who is to make good the losses sustained from cyclical floods or droughts or severe storm events of increasing frequency and intensity? If insurers don't want to carry those losses and governments don't want to burden taxpayers with the costs of those events, then the property owner has to be stuck with the loss. I wonder how many of those homeowners believe global warming is a hoax?