Posted by admin on Oct 22, 2009 in
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The increase flooding in the last few years, have made many properties uninsurable. This article looks at the new plans the government has agreed with insurers to allow more homeowners to obtain home insurance quotes . However, there will be some that still can’t aquire it.
Thousands and thousands of homeowners will still be able buy invaluable insurance against flooding. It has been broadcast that insurance companies have reached an agreement with the government after they committed to a long-standing flood protection arrangement.
Under the accord, insurance companies have guaranteed to afford protection to any property considered to have a threatof less than one in fifty five from flooding.
As long as plans are in position to diminish the threat to an acceptable level within the next 5 years, insurance companies will carry on making insurance accessible to existing small businesses and domestic. The Environment Minister said that to realise these strategies the government has consigned itself to a long term thirty year strategy to optimise flood barriers.
The government aims to develop fortifications and urge homeowners to protect their properties would mean that an existing statement of policy approved by insurers could terminate in 2013.
This deal comes over a year after floods struck areas of Gloucestershire, Hull and the Midlands. These floods caused 184,000,185,000 claims for flood-ruined businesses, cars and houses. Payouts from insurance companies came to an eye watering five billion pounds.
The spokesperson told BBC Radio 3 Daily programme: “The insurers very sensibly said that it is crucial to have a long-standing plan – 27 years is the figure that we are going ahead with.
“We are looking at surface water flooding, coastal flooding as well as river flooding, to ensure that the increased investment that we have, is continous in the long term.”
On the other hand, the spokesperson failed to say how many properties may fall outside the one in fifty five danger range and be classified as not defendable against floods, saying just: “That is not for government to say publicly.”
He also stated how important it was that the Environment Agency makes use of its new controls to thwart any new industrial or housing developments that may be in jeopardy from flooding. He also said that life insurance companies were now prepared to provide better premiums to homeowners who do something to make their properties resilientagainst the likelihood of rising flood waters
He added: “What has changed is the climate change predictions that the scientists are giving us – that the severe weather conditions are going to mushroom in the next 15 – 20 years.”That necessitate a long-term approach … It is something we have been deliberating with the insurers. They, quite justifiably, want to have guarantees that houses are protected and we, quite justifiably, want to do that in any case.”
A Director of the Association of British Insurers said the deal would make certain flood protection stayed widely available to homeowners.
“This deal is tremendous news for everybody in danger of flooding,” he added. “We are elated that the government recognises that a long-term investment strategy, adequately funded, is the best way to deal with the growing flood danger.”
The ABI had previously warned that more than 600,000 homes could become uninsurable, unless the government invests more money in our flood barriers.
Brokers Online is a specialist uk finance website offering its clients access to many insurance products from home insurance to medical insurance.
Tags: Acceptable Level, Bbc, Coastal Flooding, Environment Minister, Five Billion, Flood Barriers, Flood Cars, Flood Protection, Floods, Fortifications, Home Insurance, Insurance Companies, Nbsp, New Deal, Prope, Radio 3, Small Businesses, Spokesperson, Sunny Outlook, Surface Water
Posted by admin on Jul 2, 2009 in
Main Content Welcoming the recent fall in inflation, debt management companies have highlighted the significance of this drop to people struggling to manage their debts.
In October, the CPI (Consumer Price Index) measure fell from 5.2% to 4.5% – the largest month-on-month fall in 16 years. Having said that, the reading of 5.2% was the highest reading in 16 years, so even a reduction of 0.7% falls far short of returning inflation to a ‘normal’ level.
“Remember the Bank of England’s target for CPI inflation is just 2%,” said a spokesperson for the debt management company. “At 4.5%, today’s rate of inflation still means prices are rising more than twice as fast as the Bank would like – this reduction simply means that the speed with which things are getting more expensive is slowing.
“More to the point, CPI has been over the Bank of England’s 2% target ever since October 2007, so today’s consumers are still dealing with the cumulative impact of a full year of high inflation. And the timing makes that elevated cost of living particularly dangerous: today’s consumers are also dealing with record levels of personal debt, as well as rising unemployment.”
As a result, there are many people finding it hard to manage their debts: trying to stretch a shrinking budget further each month. “For anyone in that position, any decrease in inflation can’t come fast enough. They’ll be relieved to see some expenses – such as petrol – coming down, but many other things are still far higher than they were a year ago. A recent article in The Guardian, for example, reported that a basket of 24 staple items in the UK’s biggest three supermarkets now costs 17.8% more than it did last November.”
Looking forward to next year, it seems the Bank of England is expecting inflation to eventually drop below its 2% target, and perhaps as low as 1%. “This is good news for two reasons,” said the spokesperson for the debt management company. “Not just because it’ll mean prices are (relatively) coming down, but also because it could allow the Bank to cut the base rate even further.
“Clearly, a lower base rate could help many people currently struggling with their finances. People on tracker mortgages will see the most immediate benefit – many of them have already seen their mortgage payments drop by hundreds of pounds compared with July, when the base rate stood at 5.75%.”
Nonetheless, too little inflation can be as dangerous as too much – and we’re now facing the possibility of deflation in 2009. While economists agree that a short stint of deflation would not be a problem, any sustained period of shrinking prices could seriously damage the economy.
Deflation means a decrease in the price of property, shares and goods of all kinds. People therefore wait to buy expensive items, as it only makes sense to wait until the price comes down. Falling demand means companies sell less and are forced to reduce their workforce.
“It’s clear the Bank of England has a delicate balancing act ahead of it: when it comes to normal people managing their debts, deflation could be as big a danger as high inflation.”
Tags: Bank Of England, Budget, Consumer Price Index, Consumers, Cpi Inflation, Cumulative Impact, Debt Management Companies, Debt Management Company, Debts, Guardian, Last November, Personal Debt, Rate Of Inflation, Recent Article, Rsquo, Spokesperson, Supermarkets, Target, Unemployment