MSP backs calls to remove flood insurance penalty

The revelation that households in Angus North & Mearns and in Scotland generally may be subsidising flood insurance on properties elsewhere in the UK by up to £430 a year has been described as a totally unacceptable anomaly by Nigel Don, thwe local SNP MSP.

A Scottish Parliament committee has been told that while approximately one in four properties in England are at risk of flooding, the comparable figure for Scotland is one in 20.

While flood risk management is dealt with separately in Scotland, the responsibility for financial services is a reserved matter.

Homes at high risk of flooding are cross-subsidised by policy holders in safer areas meaning that a disproportionate share of the insurance premiums are paid by Scottish households.

Mr Don said: “When the Scottish Government and local councils are investing substantial sums of public money to cut back the risk of flooding, then surely insurance companies should reflect these investment priorities in the premiums they charge.

“The current blanket premiums charged for flood risk across the UK are unfair and it is clear that Scotland should be able to benefit from lower premiums because of the lower risk.”