Industry warns on flood risk cover

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The Government has been urged to protect homes from flooding or face a situation where half a million homes will be without home insurance.

According to the Association of British Insurers, the Environment Agency has identified 517,000 homes as being at "significant risk" of flooding.

The trade body warned that its members might not offer home insurance unless adequate flood defences are constructed - particularly to protect against flooding from drains.

Of the 180,000 home insurance claims handled in the wake of last summer's floods, half were caused by water coming up through drains, the group said.

Further to this demand the industry wants the Environment Agency to be put in charge of a co-ordinated strategy covering all aspects of flooding and flood risk.

In the meantime the industry has agreed to continue offering home insurance to properties that are at risk from flooding at a price that reflects the risk - so long as the Government takes responsibility for providing adequate defences.

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