08:00 - 04 September 2007
A Government minister has called for a "fair approach" to
insurance after the floods.
On a visit to flood-hit businesses in Hull, Minister for Competitiveness Stephen
Timms said all homeowners must have access to insurance cover.
Mr Timms' comments follow a Mail investigation that revealed many insurance
firms are refusing to offer new quotes to those affected by floods and have even
raised insurance premiums for those who were not.
The Mail
launched its Play Fair campaign to lobby insurance companies to reverse their
decision to blacklist thousands of homes in East Yorkshire and to provide
competitively-priced cover for homes, whether flooded or not.
Mr Timms said: "It's essential people should be able to obtain insurance for
their homes.
"I want to see a fair approach and I would be happy to look into the issues
raised in your campaign and take them up with the Association of British
Insurers (ABI).
"We recognise there are serious problems. We have set up a forum for the
Government and the ABI to talk about these problems."
"It may well be small businesses are facing similar problems.
"If that's the case I want to know about it."
Meanwhile, Business Secretary John Hutton is reported to have said he refused to
be "blackmailed" over threats to stop covering homes in flood-risk areas.
Speaking after a flood summit in Doncaster, Mr Hutton said: "We won't be
blackmailed. We will have a proper discussion about these things and hopefully
come to the right outcome."
The ABI refuted claims they were trying to blackmail the Government following it
sent a letter to Environment Secretary Hilary Benn last week.
The association has previously said the industry wants reassurances over future
improvements to the region's drainage system before agreeing to review cover to
all homes.
An ABI spokesman said: "We're not trying to blackmail the Government. We want to
make sure they're true to their word and uphold their part of the bargain."
Despite many people who have been unable to get cover approaching the Mail, the
spokesman said the ABI was "not aware of any areas that are uninsurable".
Mr Timms was speaking yesterday during a visit to coatings factory Akzo Nobel in
east Hull.
The plant lost about a day's production when it was flooded by water up to 2ft
deep.
Mr Timms said: "I am very impressed by the resilience of the company and its
workforce."a href="mailto:j.collingridge@mailnewsmedia.co.uk" class="lblue"
j.collingridge@mailnewsmedia.co.uk /a