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INSURER MADE TO PLAY FAIR WITH FLOOD-HIT RESIDENT

08:00 - 24 October 2007

A flood-hit resident who was told his home insurance would not be renewed has today been assured the cover will continue after the Mail intervened.

Tony Peterson, of Seaton Road, Hessle, was informed by his insurance company Rias it would not be renewing his cover for buildings and contents insurance when his annual policy runs out next month. The firm confirmed this when contacted by the Mail.

The Association of British Insurers (ABI), of which Rias is a member, backed the company's right not to insure people if there is no proof an area's flood defences are being improved.

 However, after the Mail's initial contact with Rias, officials said they would offer Mr Peterson a renewal.

Mr Peterson, 61, said: "I cannot thank you enough. I never expected the insurers to go back on their decision after they had told me in writing they would not cover me."

It comes as the Mail continues our Play Fair campaign, which calls on the insurance industry to provide competitively-priced cover for homes in the region, whether they were flooded or not.

Hundreds of readers have now signed the Mail's online petition, which will be passed to the ABI.

Mr Peterson's property sustained £35,000 of damage in the June 25 floods and he made a claim to Rias.

The firm said it would not renew his policy - which costs £31.40 a month - after reassessing the risk following the large claim.

The decision left Mr Peterson facing four months without any cover while his existing claim with Rias was completed because insurers do not take on new customers while there is an outstanding claim with another company.

Mr Peterson formally appealed against the decision, only to be told by Rias, who are part of The Fortis Group, the "decline in cover still stands".

Mr Peterson said: "In the 27 years I've lived here, I've never not had cover.

"I expected the cost of my home insurance to rise following the claim, and I would not have minded if it had, but to decline me altogether was totally out of order."

Members of the ABI are bound by the organisation's statement of principles for the provision of flood cover.

Jonathan French, from the ABI, said the statement outlines how members will continue to provide cover - but only if flood defences are adequate.

He said: "ABI members say they will maintain cover for existing customers in flood risk areas, provided there is to be improvements in flood defences.

"If there is not any proof of Government spending, members of the ABI are within their rights not to insure."

Simon Robinson, from Rias, which specialises in insurance for the over-50s, said: "On this occasion, we will intervene."

Have you been denied cover by insurance companies? If so, call the Mail on (01482) 315178.