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November 30, 2012 6:53 pm
Up to 200,000 households in flood-prone areas could be left without access to home insurance as the government and industry remain at loggerheads over a flood agreement.
The existing system, which enables insurers to offer cover to homeowners living in high-risk flood areas, is due to expire in June 2013.
A new scheme to ensure customers can still buy affordable flood insurance has been proposed by the insurance industry but was rejected by the government.
Insurers now say they “cannot guarantee that affordable flood insurance will be available from 2013”.
The Association of British Insurers says existing cover will remain in force for the life of the owner’s policy. Householders are advised to speak to their insurer if their policy is coming up for renewal.
The political impasse continues with about 1,000 homes suffering flood damage in England and Wales in the past week.
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