The Environment Agency has issued over 250 flood warnings following torrential rain and rising river levels across the country.

Forum Response: Association of British Insurers

A spokesman for the ABI said: "With some two million properties currently vulnerable to flooding, a new statement of principles, which came into effect on January 1, 2003 reaffirms the commitment of insurers to continue to provide flood insurance to as many flood-vulnerable properties as possible.

"Under the statement, which will be followed by ABI members, flood insurance will continue to be offered to flood-risk properties currently protected to the government's minimum defence standards, and to those properties where improvements to existing defences to bring them up to the minimum standard, are planned to be completed by 2007.

"And where someone moves home, the existing insurer will continue to offer flood cover to the new purchaser."

Forum Response: General Insurance Standards Council

Angela Darling, head of policy for GISC said: "We appreciate that flooding is a major concern for some property owners. There has been much media coverage concerning the end of the agreement for insurers to renew home insurance policies for properties affected by the severe flooding two years ago.

"However, we understand from the Association of British Insurers (ABI) that there is unlikely to be an immediate problem for flood-affected property owners, but that policyholders should speak to their insurers or insurance advisers at the time of renewal.

"This isn't to say that all policyholders will be offered renewal, as there are numbers of factors that insurers take into account when deciding to accept a risk. In respect of flood risks, though, the ABI has said that insurers will be considering renewals on a case-by-case basis, in consultation with the relevant local authority and regional Environment Agency, and possibly on the condition that the property owner takes certain actions to mitigate losses, for example: construction of some form of flood defence around that individual property.

"It is important to note that insurance businesses are commercial operations and, while GISC regulates the sales, advice and service standards of its members, it is not appropriate for the regulator to set premiums or to dictate that an insurer must take on certain risks.

"However, customers do receive important protection when they deal with GISC members. Members have made a commitment to deal with customers fairly and reasonably and must tell customers when they need to renew their policy, or when the policy will end. If there is any question that renewal may not be offered or conditions may be imposed on continuing cover, GISC members are required to inform customers in reasonable time before cover ends."

Forum Response: Norwich Union

David Ross, media relations manager at Norwich Union, told ePolitix.com: "Over the past two years, the insurance industry has kept its promises and there is a general consensus that it has done all it can. Whether the government has kept its side of the bargain is another question. There have been promises to spend unstipulated amounts on flood defences though no sites have been announced and no dates given.

"The government needs to put its plan into action. The location of flood defences will have an impact not only on house insurance but on the buying, mortgaging and selling of property. The issue of flooding, though a core issue for the insurance industry, is of extreme significance to other sectors.

"From another angle, people on a local and national level are saying enough isn't being done in the planning stages to prevent building on flood planes.

"In reality, local authorities needing to build essential housing face a difficult decision - build on flood planes or build on green belt land. The public needs to decide which is the lesser of two evils."