ACTION is needed in the insurance market to ensure that home and business owners at risk of flooding can avail of adequate cover at a reasonable cost, according to Fianna Fáil MEP Billy
Kelleher.
A report from the Central Bank of Ireland in October 2024 found that Ireland has a ‘flood protection gap’ – that there is a shortfall between the cost of flooding in Ireland and the portion of that cost which is insured.
According to the report, the estimated average cost of inland flooding in Ireland annually is approx €101m annually, and just 1 in 20 buildings in the country have limited access to flood protection insurance.
‘What we have seen in Ireland over the last week[s] due to the devastation caused by Storm Éowyn reminds us all that natural disasters can have major economic and social consequences,’ Kelleher said.
Cork is one of the counties where the flood protection gap is most prevalent – 54% of the gap is concentrated across five counties in Dublin, Cork, Kildare, Clare and Louth.
‘The gap can be caused by no insurance being offered to owners or the costs being so prohibitively high that they cannot afford to pay the premiums,’ Kelleher added.
‘In recent years, we are seeing stronger storms with massively increased precipitation levels. Only this month, parts of the country saw heavy snowfalls, which resulted in large volumes of water being dumped into our waterways.
‘Each time, home and business owners are left waiting to see if flooding will occur.
‘And this trend is not likely to reverse until we take meaningful and impactful measures to mitigate climate change.
‘Their worry is compounded by the fact that in certain areas of the country, flood insurance is simply not available to most people.
‘This cannot be allowed to continue. While investment is taking place by the Government in flood relief and protection schemes, the insurance companies also need to play their role.’
