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UK insurers seal deal on flood cover

The Association of British Insurers (ABI) and the UK Government have reached an agreement that ensures flood insurance will remain widely available.

The agreement outlines the actions that both the Government and the industry will take over the long term. These include a long-term investment strategy setting out flood prevention policies and funding.

The Government says it will also work to prevent inappropriate developments in flood-risk areas, and will work with the industry to raise awareness in areas where flood risks are significant and provide more information about how to obtain flood insurance.

ABI Director-General Stephen Haddrill says the agreement “should lead to a competitive flood insurance market”.

He says insurers will continue to make flood insurance available for homes and small businesses in areas where the flood risk is no worse than a 1-in-75 annual risk. It will also offer flood cover to customers in “significant flood risk” areas, providing there are plans to reduce the risk to an acceptable level within five years.