A new agreement yet to be reached over cover to flood-risk homes, could leave homeowners without flood insurance the Local Government Association has warned.
Representing more than 350 councils in England and Wales, the LGA, has said today that an arrangement between the Government and the Association of British Insurers (ABI) which provides flood cover, expires next June.
They said people in areas including Nottinghamshire and Worcestershire, have been refused or priced out of home insurance, because of flood risk.
It's feared that the longer Government and industry stall on a new deal, the more households are likely to be denied cover.
Leaving them exposed to the risk of losing their homes in the event of flooding.
The extreme weather we have seen over the past few weeks is a stark reminder of the importance of flood insurance.
– Councillor Clyde Loakes, vice chairman of the LGA's environment board
"It is absolutely vital that Government and the insurance industry come to a new deal on providing affordable cover as a matter of urgency.
"Households are now being refused cover and left exposed to the risks of damage and destruction.
"A new agreement should have been sorted long before now and the continuing delays are having a very real and severe impact on thousands of people who will be exposed to the risk of losing their homes if they are unable to find insurance."
However the ABI said that it was wrong for the LGA to claim insurers could leave their customers in limbo on flood cover.
– Nick Starling, ABI director of general insurance
"Insurers continue to honour their commitments under the current agreement with Government, providing cover to their customers in high flood-risk areas as a standard part of home and small business insurance.
"Insurers are determined that flood insurance remains available and affordable and we are currently in constructive discussions with Government to explore how we can achieve this."