Terence Flanagan (Dublin North East, Independent)
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44. To ask the Minister for Finance the steps he will take to ensure that homes damaged in recent storms will continue to have home insurance; and if he will make a statement on the matter. [3429/14]

Michael Noonan (Limerick City, Fine Gael)
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At the outset, it should be noted that the issue of flood cover and its unavailability is one which I am familiar with. I am also very conscious of the difficulties that the absence of such cover can cause to householders and businesses. However, I am not in a position to direct insurance companies to provide flood cover to specific individuals. The issue of provision of new flood cover or the renewal of existing flood cover is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are accepting.

The idea of making flood insurance compulsory has been considered. However, it would mean that in areas where there was likely to be regular flooding, the cost of insurance would almost certainly be prohibitive and could make premiums unaffordable for policyholders in general.

On the question of legislation, the Government has also examined the introduction of a scheme to protect householders who cannot obtain household insurance in respect of flooding from regular insurance bodies. However, this approach was not considered financially viable because it was believed that over time it would incentivise industry to discontinue the provision of cover in medium and high risk areas thus making the cost of such a scheme prohibitive.

What the Government can do, however, is try to address the underlying problem through appropriate remedial works where this is economically feasible. The Office of Public Works (OPW) is committed to doing all it can to alleviate the impact of flooding through the provision of defences as well as a comprehensive assessment of flood risk throughout the country and development of flood risk management plans for the areas most at risk under the National Catchment Flood Risk Assessment & Management (CFRAM) Programme. This commitment is underpinned by a very significant capital works investment programme which will see up to €225 million being spent on floor relief measures over a five year period from 2012 to 2016.

Most of the damage arising from the recent stormy weather was in coastal counties in the West and South.  OPW, along with other relevant Departments and Offices, will be providing financial support to local authorities in relation to the repair of public infrastructure damaged in the storms. In OPW's case the support will relate to damaged coastal flood defence structures such as rock armour revetments, sea walls.

In relation to the issue of the provision of flood cover in areas where the OPW has carried out flood relief works, the OPW and Insurance Ireland have been engaged in discussions to agree on a sustainable system of information sharing in relation to completed flood alleviation schemes and works undertaken by the OPW, or in certain instances by local authorities with OPW funding, and where the standard of protection afforded by these works could be verified.  These parties have reached agreement in principle but with some operational details to be finally sorted by the insurance companies.

The outcome of these discussions means that the insurance industry will have a much greater understanding of the extent of the protection provided by flood defence works and will, therefore, be in a position to provide the necessary flood cover to householders in such areas. In cases where individuals which are experiencing difficulty in obtaining flood insurance and believe that they are being treated unfairly it is open to them to contact the Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. Their service can be contacted at (01) 676 1914 or by email at