Government and insurers strike flood deal to help lower costs

Michael Bow
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INSURERS yesterday clinched a deal with the government to reduce the high cost of flood insurance for people living in flood-prone areas.

The Association of British Insurers and ministers have outlined plans for a financial lifeboat fund called Flood Re to cover the cost of flood claims from high-risk houses.

The fund, which would be funded by a levy on all insurers, will allow people at risk to pay affordable premiums. It comes after months of talks between both sides. Secretary of state for the environment Owen Paterson said people will no longer live in fear of not getting insured.