NU is working on a policy for homes in flood risk areas

Norwich Union (NU) and another top five insurer are looking at developing non-standard home policies that could exclude flood cover.

The insurers could by-pass the problem of homeowners being unable to get insurance due to flood risk by writing that risk out of the policy.

While the product development is in its infancy, it is thought the NU policy will give customers access to its claims services and repairer network without the insurer being liable to pick up the bill for any work undertaken.

An NU spokeswoman distanced the company from the development: "We have no plans at the moment of launching a product of this kind. However we are currently looking at ways to help those people who live in high risk areas with their insurance. That could include things like increasing excesses or excluding flood cover. "

Under the current ABI statement of principles, insurers should continue to insure properties that have a smaller than one in 75 risk of flooding.

But Gill Holland of the National Flood Forum pointed out this does not help homeowners who already suffer from flooding.

She said: "We don't welcome anything that encourages removal of flood cover from insurance policies.

"We would prefer to see insurers continuing to offer flood cover but if it has to happen then having a straightforward policy is one of the ways forward.

"At the moment it seems to be luck of the draw whether you have an insurance company that continues to pay out and continues to offer cover. It is not logical."