Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, if she will establish a scheme to provide affordable insurance cover for leasehold dwellings and small businesses in areas at high risk of flooding modelled on the existing Flood Re scheme for freehold dwellings.

The Government has been advised by the insurance industry that those leaseholders in high risk areas who will not be eligible for Flood Re will still be able to access affordable insurance. Insurers will also continue to provide insurance to small businesses in areas of high flood risk on a competitive basis.

Based on current evidence, Flood Re would not be an appropriate scheme for leasehold properties and small businesses in areas at a high risk of flooding.

Government has separately commissioned research into the commercial insurance market as part of its evidence gathering.