Spelman's flood insurance is the UK's Obamacare

Just wetter. And less controversial. Much like Britain.

Caroline Spelman is in talks with the insurance industry about mandating coverage of houses damaged through severe flooding.

The Telegraph reports:

Ministers are concerned that some insurance firms are able to "cherry pick" customers in low-risk areas and refuse to offer cover to home owners in flood-prone neighbourhoods.

At the same time, customers in high risk parts of the country cannot "shop around" for cheaper policies because they are tied in to their current providers under the existing agreement.

The Department for Environment, Food and Rural Affairs said most insurance companies already raise "a small sum" from policy holders to cover the cost of insuring homes at high risk of flooding.

Mrs Spelman said she was proposing nothing more than "formalising" the existing "cross-subsidy" and that talks with insurance firms have made "significant progress".

The paper reports this with the headline "Every home to pay price of floods", seemingly missing that this is the point of insurance. Individuals suffering severe losses mitigate the damage by spreading it around society. In most areas, this optional; in some, such as motoring and (in a way) health, it is not.

The real question is whether or not insurance companies should be allowed to refuse to insure those who live in areas prone to flooding.

The free-marketeer point of view is that of course they should. It's a commercial transaction, like any other, and it's not the government's prerogative to force one party to enter in to it if they aren't happy.

But the problem is that large swathes of the UK are prone to serious flooding. And as climate change bites, that's only going to get worse. It doesn't necessarily mean your house is definitely going to go underwater – if that were the case, you really should move – but it may be enough to render many places uninsurable.

And what then? It's all very well telling, say, the entire population of London, Kent and Essex east of the Thames Barrier that they are prone to flooding, but that isn't going to lead to them moving. Or, even worse, it might; Britain would be subject to development pressures like never before if that we the case.

It's almost exactly the same as the major change brought in by Barack Obama in his Affordable Healthcare Act. That requires American health insurers to cover anyone who applies for insurance, without discriminating against pre-existing conditions; the Spelman deal will require British home insurers to cover anyone, without discriminating against pre-existing general floodiness.

We do get off slightly lightly, in that the most controversial part of Obamacare isn't needed here. The individual mandate, which levies a fine on Americans who can afford health insurance but don't buy it, is needed because of the fear that people would wait until they were diagnosed with a long-term condition before buying health insurance. If they did, insurance costs would spiral as insurers would be unable to use the premiums of healthy people to pay for the sick.

Luckily, there isn't really a comparable problem for homes. If your house is underwater, it's probably a bit too late to buy insurance. Although if Spelman's deal leads to people desperately dialing Direct Line as the water flows up their street towards their front porch, that may need to be reconsidered.

The flooded village of Penkridge. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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25 times people used Brexit to attack Muslims since the EU referendum

Some voters appear more interested in expelling Muslims than EU red tape.

In theory, voting for Brexit because you were worried about immigration has nothing to do with Islamophobia. It’s about migrant workers from Eastern Europe undercutting wages. Or worries about border controls. Or the housing crisis. 

The reports collected by an anti-Muslim attack monitor tell a different story. 

Every week, the researchers at Tell Mama receive roughly 40-50 reports of Islamophobic incidences.

But after the EU referendum, they recorded 30 such incidents in three days alone. And many were directly related to Brexit. 

Founder Fiyaz Mughal said there had been a cluster of hate crimes since the vote:

“The Brexit vote seems to have given courage to some with deeply prejudicial and bigoted views that they can air them and target them at predominantly Muslim women and visibly different settled communities.”

Politicians have appeared concerned. On Monday, as MPs grappled with the aftermath of the referendum, the Prime Minister David Cameron stated “loud and clear” that: “Just because we are leaving the European Union, it will not make us a less tolerant, less diverse nation.”

But condemning single racist incidents is easier than taking a political position that appeases the majority and protects the minority at the same time. 

As the incidents recorded make clear, the aggressors made direct links between their vote and the racial abuse they were now publicly shouting.

The way they told it, they had voted for Muslims to “leave”. 
 
Chair of Tell Mama and former Labour Justice and Communities Minister, Shahid Malik, said:

“With the backdrop of the Brexit vote and the spike in racist incidents that seems to be emerging, the government should be under no illusions, things could quickly become
extremely unpleasant for Britain’s minorities.

“So today more than ever, we need our government, our political parties and of course our media to act with the utmost responsibility and help steer us towards a post-Brexit Britain where xenophobia and hatred are utterly rejected.”

Here are the 25 events that were recorded between 24 and 27 June that directly related to Brexit. Please be aware that some of the language is offensive:

  1. A Welsh Muslim councillor was told to pack her bags and leave.
  2. A man in a petrol station shouted: "You're an Arabic c**t, you're a terrorist" at an Arab driver and stated he “voted them out”. 
  3. A Barnsley man was told to leave and that the aggressor’s parents had voted for people like him to be kicked out.
  4. A woman witnessed a man making victory signs at families at a school where a majority of students are Muslim.
  5. A man shouted, “you f**king Muslim, f**king EU out,” to a woman in Kingston, London. 
  6. An Indian man was called “p**i c**t in a suit” and told to “leave”.
  7. Men circled a Muslim woman in Birmingham and shouted: “Get out - we voted Leave.”
  8. A British Asian mother and her two children were told: "Today is the day we get rid of the likes of you!" by a man who then spat at her. 
  9. A man tweeted that his 13-year-old brother received chants of “bye, bye, you’re going home”.
  10. A van driver chanted “out, out, out”, at a Muslim woman in Broxley, Luton
  11. Muslims in Nottingham were abused in the street with chants of: “Leave Europe. Kick out the Muslims.”
  12. A Muslim woman at King’s Cross, London, had “BREXIT” yelled in her face.
  13. A man in London called a South Asian woman “foreigner” and commented about UKIP.
  14. A man shouted “p**i” and “leave now” at individuals in a London street.
  15. A taxi driver in the West Midlands told a woman his reason for voting Leave was to “get rid of people like you”.
  16. An Indian cyclist was verbally abused and told to “leave now”. 
  17. A man on a bike swore at a Muslim family and muttered something about voting.
  18. In Newport, a Muslim family who had not experienced any trouble before had their front door kicked in.
  19. A South Asian woman in Manchester was told to “speak clearly” and then told “Brexit”. 
  20. A Sikh doctor was told by a patient: “Shouldn’t you be on a plane back to Pakistan? We voted you out.”
  21. An abusive tweet read: “Thousands of raped little White girls by Muslims mean nothing to Z….#Brexit”.
  22. A group of men abused a South Asian man by calling him a “p**i c**t” and telling him to go home after Brexit.
  23. A man shouted at a taxi driver in Derby: "Brexit, you p**i.”
  24. Two men shouted at a Muslim woman walking towards a mosque “muzzies out” and “we voted for you being out.”
  25. A journalist was called a “p**i” in racial abuse apparently linked to Brexit.