AN HISTORIC breakthrough is on the way for crisis-hit flood victims across Worcestershire - after a deal was reached between the Government and insurers.

From 2015 people at risk of flooding will be guaranteed home insurance and be asked to pay an excess of no more than £500.

At the moment, not only can insurers refuse to offer a price, they have been known to slap on extra premiums of up to £30,000.

Under the new deal, all insurers will have to link premiums to that person’s council tax band, meaning no householder will be faced with forking out thousands of pounds.

And all insurance companies will hand over a yearly levy - essentially a Government tax - which will go into a national pot that can used to pay for claims on high-risk homes across the UK.

The breakthrough will come as a relief to householders in areas like Diglis and Kempsey, many of whom were facing a bleak future.

Worcester-based Mary Dhonau, chief executive of Know Your Flood Risk, said: “I’m very pleased about it because what it will finally do is make flooding insurance affordable.

“The excess ‘cap’ will be £250 to £500 and that’s a big step forward because now, people can be forced to pay £5,000 to £30,000 excess.

“I am very optimistic, that coupled with the Government’s investment in flood defences, we are finally seeing good news.”

Patrick Bell, 61, who lives in Lane’s End, Kempsey, said: “I’ve been flooded many times over the years and it affects your life terribly - it can only help us.”

The agreement is subject to negotiations with the insurance industry over the size of the levy, but in principle both parties have agreed to go ahead. In the meantime, ahead of the 2015 launch, the existing Flooding Insurance Statement of Principles (FISOP) has been extended until then.

It commits insurers to continue to offer insurance to existing customers where they are at significant risk, if there are plans in place to reduce that risk within five years.

West Worcestershire MP Harriett Baldwin said: “This is important progress towards a long-term solution for property owners in my constituency, who can face the threat of flooding several times a year.”

Environment secretary Owen Paterson said: “Flooding is terrible for anyone affected by it.

“We have worked extremely hard with the industry to reach a deal on the future of flood insurance.”