Residents in the Ringsend and Irishtown areas of Dublin, affected by floods last year, have protested against sharp increases in their property insurance bills.
Labour Cllr Mr Kevin Humphreys, who represents the southeast Dublin area, said that insurance companies are "profiteering" on the misfortune of residents, whose rates have increased by 50 per cent or more. "They've come up with fantastic hikes, from €500 to €800, and these hikes are not reflected anywhere else in the city," Mr Humphreys said.
The February 2002 floods hit Ringsend and Irishtown when the River Dodder burst its banks. The clean-up operations cost €20 million and displaced 500 people for six months to a year following the floods.
Insurance companies gauge their own rates, but the flood damages would have increased the property insurance risk because of the rise in the number of claims and the cost of those claims.
"The golden rule is property insurance companies are there to insure against risk. They are not there to provide cover for inevitable events. An inevitable event is not a risk and therefore not insurable," said Mr Martin Long, the public relations manager for the Irish Insurance Federation.
Ms Marie Faulkner, a resident of Irishtown, just received her new bill on Monday. Her rates have almost doubled from €455 to €860.
Ms Faulkner and Mr Humphreys objected to the high-risk classification for the area, saying that the construction of a new riverbank wall reduces the flood risk. The Dublin City Council is building a €2 million barrier wall along the Dodder from Ringsend Bridge to Londonbridge Road. It is scheduled for completion this month.
"The city council has carried out major flood prevention. The engineer and the City Council are saying this area is much safer than it ever was before," Mr Humphreys said.
Mr Michael Phillips, city engineer with the city council said "a major part of the danger has been eliminated" by the barrier wall.
Ms Faulkner said she wants the insurance companies to reduce the risk status of the Ringsend/Irishtown area.
"Precautions have been taken to provide we won't get flooded again," she said.
"I'm tied now. I need home insurance and they know I can't go to another insurance company. They won't take us on because of the high risk. What's to stop them from coming back next year and raising it to €1,000?"
Last week, the southeast area committee of the city council proposed that Dublin City Council meet insurance companies to discuss the risk assessment and increased rates.
A spokeswoman for the council said that the councillors were open to doing so, and were trying to organise the meetings.