By Daniel Hunter
The property industry reminded the Government that property without insurance is essentially worthless, as talks to ensure universal flood cover resumed after a month-long impasse.
Reports over the weekend indicate that Cabinet Office Minister, Oliver Letwin, and the Association of British Insurers (ABI) resumed talks to find a replacement to the Statement of Principles, which expires next June.
Since 2000 the Statement of Principles ensures every property in the country can access insurance in exchange for state investment in flood defences.
“It would be unforgivable for this situation not to be resolved as a matter of urgency. Universal flood cover shouldn't be allowed to slip through our fingers," Liz Peace, chief executive of the British Property Federation, said.
“Householders and businesses have been living with this uncertainty for far too long, and this has already driven up insurance premiums. The fact also remains, we still don’t know whether hundreds of thousands of homes and businesses will be able to access flood cover from June next year.
“It shouldn’t be forgotten that flood insurance is absolutely vital to property lending. Without it the property market in certain parts of the country is completely undermined.”
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