The availability and affordability of flood insurance in the UK is causing heated debate as the Government and insurers have failed to agree a new deal to provide cover to at-risk homes.

The current agreement, which has been in place for more than 12 years, commits insurers to offer insurance to existing customers at significant risk of flooding if there are plans to reduce that risk within five years.

But that deal expires next year and recent talks between Government and the Association of British Insurers (ABI) to strike new terms have collapsed.

The ABI has warned that up to 200,000 households may struggle to get flood cover after June 30 next year, while the Local Government Association (LGA) says councils and residents close to water could be left facing an £11 billion ($16.3 billion) liability because of “unfair and unaffordable” insurance premiums.

The LGA says homes in Nottinghamshire, Worcestershire, Devon, Kent and Huddersfield are most affected by flood risk.

ABI Director of General Insurance Nick Starling says the LGA needs to “recognise that local authorities have a role to play”.

“They need to commit to investment in flood defences, and ensure that there is no more foolish development in high flood-risk areas, particularly given the rising flood risk.”

The Government says that while it wants to make sure that insurance continues to be available for the vast majority of households, it does not want to impose impossible burdens on taxpayers.

The Department for Environment, Food and Rural Affairs has said it will consider targeted support over the next few months and will make further announcements later in the year.