Boston’s MP has held talks with banking chiefs as discussions continue to try to get over problems with home insurance which could cause ‘untold damage’ to the economy.
An agreement between the Government and insurance firms to underwrite flood risk is coming to an end and MP Mark Simmonds has met with representatives of Lloyds Banking Group to discuss the next move.
If nothing is done, homes in ‘flood risk’ areas could find it almost impossible to get house insurance and, as a result, mortgages.
Campaigners fear that would have a devastating impact on Boston - grinding the housing market and economy to a halt – as even though the area is protected from flooding by drainage boards it is still classed as a high risk area.
The current agreement, in which insurers offer policies in return for Government guarantees and investment in floodd defences, expires on June 30.
No agreement has yet been reached but the ABI, representing British Insurers, has agreed to extend the current Statement of Principles for one month while talks go on.
Mr Simmonds told The Standard that the priority must be to ensure that residents in areas at risk of flooding have access to affordable home insurance.
The Boston and Skegness MP said: “It is imperative that Government officials and insurers understand the impact that this agreement will have on owners of homes deemed at risk of flooding.
“Residents of Boston and Skegness must not be left with no affordable option to insure their homes.
“It would do untold damage to our local economy, the housing market and most importantly, people’s life investments. A fair and equitable agreement must be reached.”