Flood levy could add 10% to home insurance premiums

Secretary of state for environment food and rural affairs Caroline Spelman

The Daily Telegraph has reported that Ms Spelman is in talks with the insurance industry about the levy which could increase the average cost of home cover by 10%.

Ms Spelman told MPs in a statement that she was close to reaching a deal with the industry, and said: “The government is considering with the industry’s support a way of formalising existing pricing arrangements and maintaining the current cross-subsidy in place between policyholders.”

She added: “The Government and insurers are

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