The Association of British Insurers says more than 200,000 homes could lose flood cover unless the government agrees a new deal with the industry.
Under an existing deal, which runs out in June 2013, insurers agree to offer cover to all homes built before 2009 except for those in areas of significant risk (defined as a greater than 1 in 75 chance of a flood each year). For homes in the "significant" risk category, insurers must always allow owners to renew an existing policy if there are plans to improve local flood defenses in the next five years. There aren't limits on the premiums insurers can charge in such areas.
The problem is that the insurers believe the deal is a good faith agreement in which they help out the public in return for the government continuing to fund flood defense work. They now argue that government cutbacks mean it isn't living up to the agreement.
Making what appears to be an appeal to individual MPs, the ABI has analysed the latest Environment Agency risk figures and highlighted 92 parliamentary constituencies in which more than a thousand homes are in the significant risk category and could thus struggle to find cover next year.