Environment secretary and South West Norfolk MP Elizabeth Truss has welcomed a new agreement which officials hope will make it easier for people living in high flood risk areas to obtain cheaper insurance.
Legislation is expected to be introduced in the new year to formally establish Flood Re, a new re-insurance scheme which is designed to help home owners obtain affordable flood cover.
An agreement on some aspects of how the programme will work has been reached between the company and the Association of British Insurers, while government officials say the criteria for eligibility has also been widened.
Ms Truss said yesterday: “Whilst nothing can take away the distress that flooding can cause, having access to affordable insurance will give people peace of mind.
“For the first time, we will ensure access to affordable flood insurance for people regardless of where they live.
“I’m delighted that we are one step closer to making this a reality and protecting people from spiralling insurance premiums.”
The government hopes the scheme could begin operating as early as fnext summer, subject to the passing of the new law and the approval of financial regulators.