INSURANCE firms which hike up charges or withdraw cover from flood-hit residents will be named and shamed, a Ryedale residents chief has declared.

Howard Keal, chairman of Derwent Action Group, says offending companies will lose customers if they are not more supportive.

Other Ryedale residents are prepared to swap their cover to more supportive companies in a show of solidarity for affected flood victims, he says.

Mr Keal, whose Norton home has been flooded twice, made his threat after reports that three residents in the area were facing higher charges and the prospect of losing their cover. His comments follow warnings from market analyst Datamonitor that people in flood-prone areas could see a "double digit" increase in their buildings and contents insurance.

Mr Keal said many residents who have suffered from severe flooding are facing a "double whammy" from insurance firms determined to increase their profits.

"I have heard of three instances so far in Malton and Norton whereby people who were flooded have been told they can expect their insurance cover to go up," he said.

"In one instance a resident was faced with being 'dis-insured' - the company was threatening to withdraw its cover. These are not fly-by-night firms and fortunately so far the offending firms have backed down."

But some insurance companies had been very supportive of flooded residents, said Mr Keal.

"If any firm does not back down we will name them and other residents who have insurance with that firm will be encouraged to go over to another which is more understanding," he added.

But a spokesman from the Association of British Insurers, which represents insurance firms, has defended potential moves by insurers to increase the cost of their cover. "Firms insure against the potential for an incident such as flooding to happen," he said.

"But if something looks likely to happen, such as flooding, they will not provide cover."

The spokesman added that the ABI had been in talks with the Government about flooding. "We advised the Government in January that if proper defences were built within two years insurance firms would continue to provide cover for homes in flooded areas," he added.

- Hambleton District Council is to share out £25,000 for flood defence schemes in Coxwold, Bagby, East Cowton, Northallerton, Brompton and Romanby.

Updated: 11:32 Thursday, July 05, 2001