Insurance firm denies report it 'won't cover water charge costs in event of leak'

An insurance company is playing down reports that it will not cover the cost of water charges if households spring a leak.

Allianz Insurance says it will cover the first €1,000 of water charges incurred by households if leaks occur through the likes of fire or extreme weather.

The insurer says the move is an extension of its previous insurance cover, which did not cover the cost of any water charges incurred by pipes leaking.

Water charges are currently due to be capped until next July, although the cap is likely to be extended until at least the end of 2016.