Councils in England and Wales have called for urgent action to tackle an £11bn flood insurance problem caused by what they claim are 'unfair and unaffordable' premiums on properties close to water.

As many as 200,000 homes could struggle to get insurance if the 'safety net' deal between the government and the Association of British Insurers (ABI) to provide cover to flood-risk homes isn't renewed for next year. The current arrangement expires on 30 June, 2013.