Money alert: Flood insurance
In a landmark agreement, the Government this week agreed to spend £344m next year on flood defences and prevention schemes to help protect some 200,000 homeowners who were at risk of becoming uninsured.
After years of negotiations with insurers, a last-minute agreement was struck on Thursday to develop a not-for-profit scheme called Flood Re to replace an existing agreement which runs out next month.
Insurers had refused to sign a new agreement without a Government commitment to improving flood defences. The new deal will put a cap on flood insurance premiums and link them to council bands.
The agreement costs roughly £10.50 per household which is already built into the cost of premiums, says the Association of British Insurers.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies