A new deal signed by the UK Government and the insurance industry will ensure that millions of homes will continue to enjoy content and home insurance coverage in spite of flood risk.

Following yearly floods and a number of threats of the disaster this year the Association of British Insurance (ABI) not long ago threatened to stop offering flood damage protection unless more was done by the government to boost defences.

However, the industry said it would still offer protection to people facing moderate risk and existing customers at significant risk.

But the deal will still depend on whether the government is able to improve flood defences within five years.

The new plan of action will see the government providing a long-term investment strategy in defences.

The government will also ensure that it introduces a planning system that will stop inappropriate development in flood-risk areas.

“What we’ve agreed with the government is that if they can make sure as many people as possible are protected, we’ll be able to make sure we can offer affordable insurance to all our customers who want it,” said ABI’s Justin Jacobs.