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

Allianz Insurance says it will cover the first 1,000 euro 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 didn't cover the cost of any water charges incurred by pipes leaking.

However, RTE have reported that some insurers may move to limit liability caused by water charges leaks.

Irish water has agreed to fix the first leak that occurs in an occupier's garden.

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

Meanwhile, the Public Expenditure Minister says the Government has been listening to public concerns over the water charge and stated that it’s important to get it right.