Noel Ahern (Dublin North West, Fianna Fail)
Link to this: Individually | In context

Question 67: To ask the Minister for Finance the position regarding house insurance; if there is any legislation or procedure with insurance companies regarding offering insurance, any equivalent or declined cases scheme as operated in the motor trade; the position regarding a person who cannot obtain house insurance and is exposed to fire, floor or other problems; if legislation to cover such cases is being considered; or if he can offer insurance in view of the fact that the privately owned industry has refused to do so; and if he will make a statement on the matter. [14393/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Financial Regulator has advised me that the offering of house insurance by insurance companies is a commercial matter based on the assessment an insurer will make of the risks involved. It has no role in relation to issues of pricing or the scope of cover provided by insurance companies. I have also been informed that there is no equivalent for house insurance to the declined cases scheme as operated in the motor trade. I understand that this is because motor insurance is compulsory whereas house insurance is not.

I have no plans at this stage to introduce legislation to require insurance companies to cover such people, as there is a possibility that such a proposal could undermine the existing insurance model by forcing companies to take on risks which they cannot afford. The probable outcome of this is that either such firms would leave the market, or they would quite likely price high risk business in such a prohibitively expensive fashion, that it would quickly undermine the purpose of the legislation and would result in a considerable increase in overall household and business insurance costs. The State is not in a position to provide household insurance to people unable to obtain cover in the private market, as there is no legislative basis for doing so. However, following the recent flooding and other weather events, the Government will keep the matter under review.