Irish homes and businesses in areas liable to flooding may become uninsurable, according to the Hibernian Insurance Company today.
The company says it has agreed payment on almost 500 claims from recent flooding in counties Dublin, Meath and Cork and they expect to pay out between €12-15 million for the November floods alone. They say this is five times the number of flood claims they would normally expect during the same period in an average year.
Hibernian predicts that some homes and businesses could be uninsurable if immediate Government action is not taken.
The Director of Underwriting, Dick O'Driscoll, says the situation is 'unsustainable' and they are calling on the Government to take action similar to what happened in the UK where a £150 million sterling package has been announced to develop adequate flood defences in 'at risk' areas.
Mr O'Driscoll says this UK plan is being introduced because whole areas were being deemed uninsurable and homeowners faced the prospect of owning a property that was virtually worthless.
The company is supporting the Irish Insurance Federation call on the Government to establish a National Flood Defence Agency to oversee all flood management, and in particular evaluate planning applications for new housing for flooding dangers.
Hibernian says it is operating a 24 hour hotline at its claims centre in Galway in order to deal with the thousands of customer inquiries it has been receiving. If flooding becomes a 'sure thing', he says, then insurance becomes a maintenance contract which their re-insurers would never support.
