HOMES at a Stourport holiday site could be fitted with a revolutionary device designed to slash insurance costs.

Warwickshire-based Allens Caravans, which owns Stourport's Severnside Caravan Park, will today trial the idea of fitting floatation collars around homes by lowering a five tonne caravan-type dwelling into water in Pershore.

If the operation to keep it afloat is successful, the system may soon be introduced on properties at Stourport, many of which were badly damaged by flooding last winter, said Mark Allen of Allens Caravans.

"We believe this idea is unique in the UK and if it is successful will be a massive boost to the tourism industry.

"Insurance companies are proving extremely reluctant to provide cover for holiday parks with static homes within the flood plain, and if people can't get insurance they will have massive bills when flooding occurs.

"This could affect as many as 500 sites across the UK and if the homes are uninsurable then they will not sell, with many parks undoubtedly having to close," said Mr Allen.

The collar would raise the home up as the water level rises. When it recedes, guide arms would ensure the home settles back into its original place.

Mr Allen added: "Typically, holiday homes cost from £15,000 to £50,000 and this floatation device is expected to add £3,000 to the price - but will ensure the homeowner can obtain insurance.

"The other major boost would be to the tourism industry as a whole and the prospect of saving thousands of jobs and pounds within it.

"If parks with 400 homes closed, this would mean all those families not spending their money in the nearby supermarkets, pubs, farm shops and tourist attractions which could easily lead to redundancies."