Insurance warning as rain continues to batter UK

Britain’s beleaguered towns and villages were dealt a further blow today as more rain battered the country and 200,000 householders were warned they could lose their home insurance policies.

Three people have died since the latest bout of severe weather struck, forcing hundreds of people to flee water-logged properties.

Some 530 flood warnings and alerts remained in place today as insurance chiefs hit out at the Government, claiming negotiations over future cover have hit an impasse and are now at “crisis point”.

The two sides are locked in talks relating to the replacement of a “safety net” deal to ensure those in flood risk areas can continue to afford their policies which are set to expire next year.

Insurers have called on the Government to provide a temporary overdraft facility to pay claims for 200,000 high-risk households in the event of serious flooding such as that seen in 2007.

Nick Starling, director of general insurance at the Association of British Insurers (ABI), accused ministers of rejecting its proposals.

“We want a solution even more now after the difficult events of the weekend,” he told the BBC Radio 4 Today programme.

“We have had two years to sort this out. During that time the insurance industry has put a massive amount of work and money into coming up with an insurance-led solution.

“We seem to have reached an impasse. The Government has made it clear it’s rejected our solution.”

But Floods Minister Richard Benyon insisted the Government remained “really determined” to reach a deal and that the issue was an “absolute priority” for the Department for Environment, Food and Rural Affairs (Defra).

He criticised the ABI for airing its concerns at the height of the crisis.

“I think it is actually rather demeaning at this particular moment in time to be talking about this,” he said.

“It is rather a shame that it has been raised at this particular moment when there are a lot of distressed people with flooded homes.”

The Environment Agency said a total of 901 properties have been flooded during the latest period of bad weather.

It has issued flood warning messages to 70,684 households in the past few days.

Forecasters warned of more trouble ahead as a band of persistent rain moves across northern England and North Wales, with County Durham, Teesside, North Yorkshire and the Conwy area of North Wales likely to be worst affected.

Heavy showers are also forecast in Wiltshire, Dorset and central southern England, while gale-force winds are likely to hit the northern coast of Cornwall, the north-east coast of England and parts of Wales.

The Prime Minister has promised the Government would “ensure everything is being done to help”.

David Cameron’s comments came as thousands of motorists across the country were being rescued from the roads.

There were devastating scenes in Devon where a 21-year-old woman was killed and two people were seriously injured in Western Way, Exeter, when they were crushed by a tree as wild winds whipped southern England.

It followed the death of a man on Thursday, who was killed when his car became wedged under a bridge near a ford in Rectory Fields, Chew Stoke, Somerset.

A 50-year-old man also died after falling into a canal in Watford on Saturday.

Kevin Wilkinson was walking with friends along a towpath near Wiggenhall Road in Watford shortly after 4am when it is believed he fell in.

Cambridgeshire Police said the death of a 70-year-old man whose car plunged into a river near Earith, on Saturday night, was not weather related.

Up to 0.6in (15mm) of rain is expected to fall across the spine of Britain today, less than the 1.2in (30mm) of rain in pockets of the West Country or the 1.6in (40mm) to 2in (50mm) possible in the North and North Wales, but meteorologists said it would offer little respite to weary homeowners keen to begin the clean-up.

Met Office spokesman Dan Williams said: “There is more rain around today. The hotspots are in North Wales and north-east England but obviously because there has been so much rain, that could cause problems in other areas.”

Amber alerts have been issued for the north-east of England and North Wales.

Mr Cameron's official spokesman said the Government met the ABI last week to discuss flood insurance.

“We put a proposal to the ABI and the ABI are considering that proposal,” said the spokesman.

Speaking at a regular media briefing in Westminster, the Prime Minister’s spokesman declined to discuss the details of the proposal, saying only: “We want to ensure that people are able to get insurance at an affordable price. There is a negotiation ongoing.”

The spokesman said teams from the Environment Agency are on the ground, checking flood defences and keeping a close eye on developments.

Meetings are taking place twice daily within Defra to monitor the situation, he added.

Updating the situation for the Lower Dee Valley, between Llangollen, North Wales, and Chester, the Environment Agency said: ``River levels are above normal but flooding of property is not expected at the moment.

“Flood defences are now in operation and the situation on site is being constantly monitored. More heavy rain is forecast this afternoon and overnight, which will cause the river to rise further.

“In addition to the area detailed, some localised flooding problems may result from surface water.”

Widespread flooding has caused major disruption across the North East, with persistent rain creating a continued risk of surface water and river flooding.

The Environment Agency said there are currently 17 flood warnings and 37 flood alerts in place for Yorkshire and the North East.

But with the rain persisting, communities are being urged to be vigilant as more warnings could be issued during the day.

Rivers are expected to continue to rise as surface water runs off saturated ground, and long delays and closures have taken place on the A19 due to the flooding.

The Met Office has issued an amber weather warning for the North East as well as the Yorkshire and Humber regions.

Phil Younge, flood risk manager at the Environment Agency, said: “We are expecting more rain throughout Monday, and are urging people to remain vigilant, and check their risk of flooding.

“Our teams have been out around the clock over the last few days to minimise the risks and prepare for flooding.

“We are continuing to deploy teams across the country to warn communities at risk.”