The floods might have the insurance industry running scared at the moment, but the recent action of a major insurer gives a whole new meaning to cautious underwriting.

The insurer refused to quote for a household policy for a property in CT10 and referred the enquirer to the floodline.

All well and good if it had been a flood risk area. However, the property just happened to be positioned on top of a cliff in Kent.

This follows news that car insurance in a village in Cyffylliog, Denbighshire on high ground has gone up 15 times the rate of inflation because it shares the same postcode as a floodprone town five miles away.