Talks aim to break flood insurance impasse

Talks are continuing between the Office of Public Works and Cork County Council that could prove beneficial to homeowners and businesses in two towns, where flood insurance is being sought.

Insurers refuse to provide flood cover in areas where some flood defences are demountable, insisting that delays in erecting the defences could result in significant damage.

County engineer Kevin Morey confirmed that discussions are ongoing with the OPW about covering the county council against liability in the event that it, or its agents, fail to erect demountable defences in time, or if there is a breach in other defences.

The towns are Mallow and Fermoy, where flood defence works costing €74m were provided by the county council and OPW.

Both agencies have a loose agreement about operating the defences but Mr Morey said it was likely to become more formalised, and that part of that discussion related to insurance cover.

“We need insurance to cover the council in the event that we can’t meet requirements which result in the failure of the system,” Mr Morey said. He was optimistic, however, that the OPW would provide insurance through Irish Public Bodies, and if that was achieved, it would be the first policy of its type in Ireland.

If granted, it could leave the door open to claims against the council from businesses and householders in both towns, should they get flooded due to failure in flood defences.

County councillors, in the meantime, are hoping that if the council secures cover for such eventualities, it will entice insurance companies to again offer insurance policies to residents and businesses refused in the past. The county council is responsible for flood defences in Mallow.

In Fermoy, its role involves erecting demountable defences on the northern side of the bridge, while a private contractor has responsibility on the southern side.

Fermoy-based councillor Noel McCarthy, who has witnessed a number of serious floods in his hometown, said the new defences finally completed two years ago had proved vital.

He is very much in favour of the council seeking its own cover for both Fermoy and the Mallow flood- defence scheme.

“When this happens, which hopefully it will, I think that businesses and householders who are still being refused cover should get it restored,” said Mr McCarthy.

“If people are still being refused cover after the talks are completed, the insurance companies should be hauled before a special Dáil committee to explain why.”

Cllr Frank O’Flynn also said he hoped that insurance companies would start to offer dozens of businesses in Fermoy, in particular, flood cover as they had suffered a lot financially over the years.