HOMEOWNERS whose property is at high risk of flooding will be able to buy household insurance until 31 July, after insurers yesterday voluntarily extended the existing agreement.
The Association of British Insurers (ABI) said its members have agreed a one-month extension to the deal – which ensures all homeowners can access household insurance – after failing to agree a replacement with the government.
City A.M. revealed earlier this month that leading insurers had little faith that the long-running talks between the ABI and the government would secure a new deal before the original 30 June deadline.
The ABI’s plan involves a levy on all household insurance policies, paid into a central pot that would cover major flood damage.
However the government is understood to be reluctant to cover any shortfall during the first years of the project.