Insurers will meet government ministers over flood claims

Date: 10/07/2007 15:00

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Further help might be on the way for those affected by the recent floods in Yorkshire and the Midlands, as the government is set to meet with representatives from the insurance industry.

The Association of British Insurers (ABI) recently estimated that the cost to insurers of recent flooding damage would be of up to £1.5 billion.

Gordon Brown also allowed for a £14 million relief package to be directed to the areas under most distress.

The meeting with ministers will partly be for insurers to explain how they have been trying to handle the large number of claims they are currently receiving, Nick Starling of the ABI told the BBC.

'One of the things we want to do is update them on what the insurance industry has been doing to address these devastating floods. The problem with flooding is that the damage is very severe, it takes a long time for properties to dry out before you can actually start remedying and rebuilding,' he said.

The comments were partly in response to calls by the government that the insurance industry handle the claims as speedily as possible.

And insurers also want up-to-date information on what areas where properly covered with flood defences.

A report by the National Audit Office showed that less than 60 per cent of flood defence systems were thought to be in good condition.

Under an agreement with government, insurers are only expected to maintain cover for homes that have been provided for adequate defences.

So far, the insurance industry is still waiting for more recent data from the Environment Agency.

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