Oral Question: Leaseholders Insurance after Flooding


John Stevenson: Following the floods in Carlisle, I am concerned that a group of leaseholders will not be able to get insurance under Flood Re. They consist of 68 long leaseholders with a management company as the freeholder with responsibility for insurance. That management company has not been able to obtain insurance so far. Will the Minister look into the issue and consider amending the legislation if necessary?

Rory Stewart (The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs): In addition to welcoming the shadow Secretary of State to her position, may I also welcome my friend Paul Flynn to his position?

As for the flooding in Carlisle, my hon. Friend John Stevenson is a great champion of his constituency. If there is an individual leasehold property, it would be covered with affordable insurance under Flood Re. Unfortunately, when there is a larger number of properties, such as the more than 60 properties that the landlord has in this case, it would be classified as commercial insurance and would require a bespoke, tailored commercial insurance product from the insurance industry. I am happy to look at the individual case, and the British Insurance Brokers’ Association is also coming up with tailored products exactly to address such commercial risks.


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