Dáil Éireann Debate, Thursday - 11 February 2010
92 Deputy Pádraic McCormack asked the Minister for Finance the plans he or the Government has for a Government scheme to indemnify householders who cannot get insurance cover as a result of their houses being flooded; and if he will make a statement on the matter. [7348/10]
View answer103 Deputy Noel Ahern asked the Minister for Finance the position regarding householders that have had their house insurance withdrawn or restricted due to flooding; if the Office of Public Works, another Government Department or local authority will assist in providing insurance, providing statements to allay concerns of insurers and so on; the general reaction to such statements by insurers; and if there is an agreement with insurers regarding providing insurance to flood victims. [7430/10]
View answerI propose to take Questions Nos. 92 and 103 together.
Early indications to date from the insurance industry suggest that many of those affected by the flooding will retain coverage albeit with a higher premium or a higher level of excess to reflect the increased risk. However, further consultation with the industry is to take place in order to determine the extent of the non renewal of flood insurance cover.
As the Deputies may be aware a central element of the Government's response to this issue will be flood preventative measures. In this regard the Government has allocated €50 million for flood risk management activities for 2010, which is administered by the Office of Public Works. This increased allocation will allow OPW to deliver a range of Capital Works schemes throughout the country. However the timescale for addressing this issue will depend on the seriousness of the underlying flooding problem in the different localities. Communication between the insurance industry and the State in relation to flood preventative measures will be important in order to keep the industry informed of the steps being taken to address the underlying flood vulnerabilities.
Concerning the question of renewing insurance to people who have been affected by floods, this is a commercial matter for insurance companies which is considered on a case by case basis. This allows an insurance company to properly assess the risk they are accepting. However, it should be noted that the industry has informed my Department that it is very reluctant to discontinue flood cover for existing policyholders, and would generally only do where there have been repeated flooding claims.
