Business premises at risk of flooding will still be able to get insurance against such damage after a landmark agreement by the government and insurance companies.
The Association of British Insurers (ABI) had warned that thousands of commercial premises as well as domestic residences could have cover against flooding removed from buildings insurance policies if measures were not taken to address vulnerabilities.
But the industry has now agreed to continue to offer cover to companies and people at moderate risk and existing customers at significant risk.
In return, the government has pledged to invest in a programme of flood defences over the next five years.
"What we've agreed with the government is that if they can make sure as many people as possible are protected, we'll be able to make sure we can offer affordable insurance to all our customers who want it," said Justin Jacobs of the ABI.
"The pressure remains on the government because they must deliver those defences to people in order make sure we can offer affordable insurance."
The ABI wants the government to allocate funds to tackle the problem of surface-water flooding, which was responsible for much of the damage caused in the summer floods of 2007, and also to develop river and coastal flood protection systems.
"The insurance companies, very reasonably say that it's necessary to have a long-term strategy," said environment minister Phil Woolas.
"We're looking at coastal flooding as well as river flooding and surface-water flooding to ensure that the increased investments we have made - and we have increased investment in flood defences in this country quite substantially - are sustained in the long term."
The floods of summer 2007 led to 30,000 claims from commercial premises and cost a total of around £1bn, the ABI claims.
