INSURERS have called on the Government to increase its spending on flood defences to protect a growing number of "at risk" homes.

The Association of British Insurers (ABI) has warned that the industry might otherwise pull out of an agreement, under which it provides cover for vulnerable homeowners as long as the state invests sufficient sums in flood prevention schemes.

The warning comes after The Press recently revealed that plans to boost flood embankments protecting hundreds of homes in the Leeman Road area of York might be jeopardised by Government cuts.

The defences came close to being overtopped during the floods of November, 2000, and the Environment Agency wants to raise and strengthen them.

Coun Andrew Waller, City of York Council's representative on the agency's Yorkshire Regional Flood Defence Committee, said last month there could be a ten per cent cut in expenditure, which would lead to the Leeman Road scheme being lost.

Earlier this year, the Department for Environment, Food and Rural Affairs announced it was to slash its flood defence budget for 2006/07 by nearly £15 million in a response to "unforeseen costs".

The ABI recently warned homeowners they could find it harder to insure unprotected new-build properties in flood risk areas.

It noted that over the past four years, nearly 800 new housing developments had been built in high-risk areas against the advice of the Environment Agency.

Under an agreement reached in 2002, the ABI said its members would give flood cover to houses, even those at risk, as long as the Government was committed to investing sufficient sums on a sustained basis to provide flood defences.

But the association said today that cuts in spending coupled with increased building on the flood plain could lead to a review of the situation.

Any reduction in investment by the Government would "make it harder for insurers to honour the agreement", the association said.

Nick Starling, director of general insurance at the ABI, said: "The Environment Agency's assessment of the number of properties at risk of flooding - 570,000 - has more than doubled in the last four years as we understand more about the flood risk.

"Yet spending on flood defences is now falling in real terms.

He added: "We believe that flood defence spending needs to rise by ten per cent a year, to £750 million by 2011.

"This will give those vulnerable to flooding the protection they need and the flood insurance cover they depend on."

The ABI's comments coincided with the launch of the agency's national flood awareness campaign.

A spokesman for the department said funding for flood and coastal erosion risk management had nearly doubled over the last decade, from £307 million in 1996/97 to £600 million in 2005/06.

He added that the department was aware of the association's call for increased Government spending and the level of funding for the 2007/08 financial year would be announced shortly.

Sign up and avoid misery of damage

THOUSANDS of people across Yorkshire are leaving themselves open to the dangers of flooding despite the huge potential costs, the Environment Agency has warned.

Homeowners who are flooded stand to lose on average more than £28,000, compared to £900 if they are burgled, the agency said at the launch of its national flood awareness campaign.

Some 48 per cent of people in the region have signed up to a free service that issues alerts when flooding is imminent but thousands of homes and businesses aross Yorkshire are still missing out, the agency warned.

Flood forecasting team leader Asghar Akhondi-asl said: "Clearly, some people living in flood risk areas are in denial about the dangers flooding can cause.

"We all have locks on our doors and many of us install alarms to protect our home and possessions against burglary, but, surprisingly, so few people are taking steps to safeguard their home against the increasing risk of flooding."

The annual average damage from flooding in England and Wales is estimated to be £1 billion.