The Department for Environment, Food and Rural Affairs (Defra) and the Association of British Insurers (ABI) have agreed on a long-term flood action plan.
The government will be implementing a long-term investment strategy for preventing floods funding and future policy and both the government and the insurance industry aim to improve understanding of the risks of flooding.
Inappropriate development in flood-risk areas will be prevented by a planning system and it will also raise awareness about insurance and precautions in such places. Households with a low income will have improved access to insurance.
Insurers will continue to make flood insurance available for homes and small businesses in places where the risk of flooding is not more than 1.3 per cent annually and as long as there are plans in place to lower the risk to an acceptable level within five years, those at significant risk will also be offered insurance.