Mortage lenders welcome agreement between insurers and floods minister Phil Woolas
The Council of Mortgage Lenders (CML) has expressed its approval at the announcement by the Association of British Insurers (ABI) and the government that flood insurance will remain widely available.
CML head of policy, Jackie Bennett, commented: “We welcome the announcement that flood insurance will remain widely available in the future.
“Insurance is an essential requirement for a lender to grant a mortgage. The agreement reassures both homeowners and mortgage lenders which is important in the current environment.”
The agreement between the ABI outlines actions that the government and insurance industry will take over the long term, including improving its understanding of flood risk, and promoting access to home insurance for low-income households.
Floods minister, Phil Woolas, said: “The devastation caused by last year’s unprecedented rainfall has shown just how vital it is for people to be able to insure their homes and livelihoods against the risk of flooding.
“Working together we have succeeded in ensuring that flood cover is available in both the short and long term. I’m delighted that the industry has agreed to work with us to raise awareness and encourage homeowners to take steps to protect their homes where appropriate.”
