Coastal residents have been assured their home insurance costs will remain affordable, despite concerns raised by the industry.
The Association of British Insurers last year announced that thousands of flood risk properties could struggle to afford their premiums, unless an agreement was reached with the government.
Despite the agreement’s deadline arriving in June, with a deal yet to be struck, the MP for Boston and Skegness Mark Simmonds has assured his constituents they will be able to access affordable insurance whatever the outcome.
Speaking at a meeting hosted by the Skegness and District Chamber of Commerce on Friday, he said: “I’m hopeful that either an agreement will be reached that will mean people will be able to access affordable insurance, or if that’s not the case, the government will have to take action to ensure that it is the case. We either do it by agreement or we impose it.”
The ABI has also expressed high hopes an agreement will be reached, although, without one, it says the industry will revert to a free market for flood insurance, meaning high risk properties may have trouble finding an insurer able to over cover at any price.
“While we cannot guarantee that an agreement will be reached, both we and the government are totally committed to doing all we can to do so,” a spokesperson said.