Homes to get flood cover despite the risks
Millions of homeowners in the UK's most flood-prone areas will still be able to get flood protection insurance after a deal was met between The Association of British Insurers (ABI) and the government.
The deal will give new cover to people at moderate risk and to existing customers at significant risk. But this depends on the government holding up its end of the bargain by improving flood defences within five years and stopping planners from building in flood-risk areas.
The ABI's Justin Jacobs said: "What we've agreed with the government is that if they can make sure as many people as possible are protected, we'll be able to make sure we can offer affordable insurance to all our customers who want it."
"The pressure remains on the government because they must deliver those defences to people in order to make sure we can offer affordable insurance."
During 2007, flooding cost the ABI's members £3 billion in claims.