Rising premiums and excesses hurt poor Welsh communities
Liberal Democrats in Wales want a Treasury investigation, warning that rising insurance premiums are creating a new problem of “flood poverty” in many Welsh communities, the Western Mail reports.
Insurance costs in areas at risk of flooding are now up to three times higher than elsewhere. In one case, an annual insurance policy rose from £1,000 to £3,747 with a £10,000 excess.
Montgomeryshire MP Lembit Opik said: “The insurance companies are in business to make money, so one can’t condemn insurance companies for trying to keep afloat. [But] in doing that they are sinking the affordability of their product for many people.
Room for manoeuvre?
“If you have a £10,000 excess, and £9,500 of flood damage, that comes out of your pocket. My biggest worry is that people will start living dangerously and not take out insurance. The honest answer is to talk to the insurance companies and see what their room for manoeuvre is.”
The Lib Dems also called for more flood defences.
