HBOS today announced it is to continue providing house and contents insurance cover for homes locate...
HBOS today announced it is to continue providing house and contents insurance cover for homes located in flood plains until 2005, despite the near ending of an industry agreement with the government to provide such cover.
HBOS has also promised not to impose premium rises of more than 5% per annum during that time for the 1.8 million properties it covers in those areas.
The government deal involved the Association of British Insurers following two years of disastrous floods across the UK, which threatened to cut off all insurance contracts on millions of homes.
Flooding is set to become increasingly common due to global warming, and the insurance industry has yet to formulate a common policy on whether to continue underwriting risk associated with threatened properties.
HBOS' decision leaves some breathing space for affected families, but the government is already being urged to double spending on sea defences, otherwise the insurance industry may eventually cut off all contact with affected areas.
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch