Prime Minister ‘confident’ flood cover agreement will be reached

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Prime Minister David Cameron says he is ‘confident’ that an agreement will be reached with the British insurance industry over flood cover.

Speaking at Prime Minister’s Questions on Wednesday, MP for Southampton, Alan Whitehead, asked why the government had ‘failed to reach agreement with the British insurance industry on future insurance for their homes’.

He said: “People fear that they will not be able to insure their homes after June 2013. Why is the Prime Minister fiddling while the country floods?”

The Association of British Insurers has warned that homes may be uninsurable unless a solution is found when an existing agreement with the government finishes this year.

Mr Cameron responded: “The discussions are still under way. They have made very good progress. I am confident that we will reach an agreement.

As he said, the current agreement does not run out until June this year. I am regularly updated about how those discussions are going.

“I know from my own constituency, which has been subject to regular flooding, just how important they are. I would also add that we have put in an extra £120 million in flood defences.

“I think everyone can now see that the flood defence work that has been done over recent years has made a significant difference when we have had high levels of rainfall and very high water in our rivers and streams.”