The Association of British Insurers (ABI) proposed the Government provide a temporary overdraft facility, which would only be used to pay claims while the scheme built up cash reserves, with the borrowed sum to be repaid by the industry the following year.
The BPF wants the Government to commit to the scheme, as property without insurance is essentially worthless.
Liz Peace, chief executive, said: "As the sad current events highlight, wide scale flooding has significant implications for property owners.
"The Government needs to act quickly on its word to provide greater assurances over flood protection for developers to ensure that homes and regeneration sites are insurable and protected.
"We believe the ABI’s proposal could have provided the desperately needed long term solution, instead the clock is ticking before the Statement of Principles expires next year."
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