A YORK insurance firm has announced that it is one of the first brokers in the country to launch an affordable flood insurance product backed by Flood Re, the Government and insurance industry-supported not-for-profit scheme.

Clifton Moor-based Cavere Insurance said it had successfully built and launched a buildings and contents insurance policy that provided affordable cover for homes affected by flooding.

Recent flooding crises have created severe problems for householders, not only as the waters rise but also afterwards, as residents in flood-hit areas have struggled to find affordable cover for their homes.

As a result the Government has been working more closely with insurers in the UK, delivering a new way of dealing with and offering flood cover on home insurance through a not-for-profit scheme that is funded by insurers.

The Cavere product offers cover up to £1 million for buildings and up to £60,000 for contents, with an excess of only £250 for flood claims.

The product, underwritten by Ageas Insurance, one of Europe’s largest insurers, is rated five stars by Defaqto, the independent financial research company.

Paul Thompson, Cavere chief executive, said: “I am delighted that Cavere has managed to be amongst the first in the country to offer a Flood Re-backed product into the market. Being based in York we are only too aware of the impact flooding has on homeowners and their lives.

“What is great about the scheme is that homeowners in flood risk areas can now have the peace of mind knowing that their property is insured at an affordable price and the excess of £250 will not break the bank in the event of a claim.”

More than 600 homes and businesses were flooded in York during the storms on Boxing Day which left large areas of the north of England under water. About 250 people were evacuated from their homes, 10,000 sandbags were used and military personnel joined rescuers in helping people escape from the waters.

During the crisis the River Foss flood barrier in the city was raised when water began flooding the floor of the pumping station, forcing staff to turn off the electricity.