LONDON (Reuters) – Britain has refused to bankroll a fund to subsidize insurance for households in flood-prone areas, derailing talks over the scheme and potentially leaving 200,000 homes without protection.
The government has told insurers it will not provide an overdraft to the proposed fund, leaving talks over the plan deadlocked, the Association of British Insurers said on Monday.
The impasse comes amid renewed heavy flooding across England, with 500 properties affected since Wednesday and 70,000 more at risk, according to Britain's Environment Agency.
Britain has been hit by several severe floods over the past ten years, with one in the summer of 2007 costing insurers about 3 billion pounds ($4.8 billion).
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