A new industry-backed levy will enable insurance companies to cover those at the greatest risk of flooding.
All UK household insurers will have to pay into this pool, creating a fund that can be used to pay claims for people in high-risk homes.
The deal reached between DEFRA and the Association of British Insurers (ABI) will mean hundreds of thousands of households in flood-prone areas will also be guaranteed affordable flood insurance.
The current ‘Statement of Principles’ that runs out at the end of July will be replaced with an agreement where flood insurance premiums are capped.
Premiums will now be linked to council tax bands so that people will know the maximum they will have to pay.
Environment Secretary Owen Paterson said: “Flooding is terrible for anyone affected by it. We have worked extremely hard with the industry to reach an agreement on the future of flood insurance.
“There are still areas to work through but this announcement means that people no longer need to live in fear of being uninsurable and that those at most risk can get protection, now and in the future.”
So, for conveyancers who have not advised their clients to get a flood search, its maybe time for a sigh of relief!