RESIDENTS could soon struggle to get insurance against flooding as the row over funding for a much-needed new defence scheme in the city deepens.

The Environment Agency says boosting the city’s flood defences is a priority after Exeter was ranked as the 15th most at-risk location in the country by the Association of British Insurers. It is estimated the cost of flood damage could reach £300m.

And it is likely to become increasingly difficult for householders living on Exeter’s flood plain to get insurance.

At the moment Exeter’s defences can cope with a once-in-40-years event. But it needs to be boosted to cope with a once-in-100-years event.

If such a flood did it occur, it would affect 4,500 homes and businesses in Exwick, St Thomas and Marsh Barton.

It is also likely to hit St David’s Station and the sewerage treatment works at Countess Wear, affecting the entire city.

The cost of improving the city’s 50-year-old flood defences is around £25m.

But the city council has told the Environment Agency that it does not have the money to fund its contribution, estimated to be around £12m.

Instead it is calling on the Government to pay for the work to be done urgently.

Karime Hassan, one of the council’s strategic directors, said: “Exeter’s current defences need to be looked at in the light of the changing climate.

“What was an acceptable scheme in the 1960s is unlikely to be so now.

“In Exeter’s case the benefits of a flood protection scheme would be considerable.

“Rightfully therefore, the Government should be prepared to cover the cost of the scheme.”

The call has been backed by city MP Ben Bradshaw.

He said: “The Government is placing the personal safety and economic security of thousands of householders and businesses in Exeter at risk with this reckless neglect of flood danger.

“Thousands of householders in the city face the double whammy of cuts in flood defence and the insurance industry threatening to withdraw from the deal which guarantees people cover.

“What the Government is doing is totally unacceptable.”

He added: “The minimum which the city council would have to find is £12m, and that is a huge amount for a small authority like Exeter.

“The Government is breaking its commitment to do something, so local communities are going to have to pay more.”

The Association of British Insurers has told Mr Bradshaw that flood insurance will continue to be provided as a feature of standard household and small business policies if the flood risk is not significant, which means no worse than a one in 75-year probability – Exeter currently has a one in 40-year probability. They would also continue to provide cover if the Environment Agency has announced plans to reduce the risk to below ‘significant’ within five years.

Keiron Northcott, managing director of Northcott Beaton insurance brokers in Exeter, said: “I’m aware of certain areas where the majority of household insurers are already excluding flood cover or having an increased excess related to a flood.

“We are not at the stage where insurers are refusing to do it, but some are charging an awful lot more money in certain areas and it does seem to be going that way.

“Premiums have been going steadily upwards, particularly in areas around the River Exe, and quite a few companies won’t quote at all.

“The majority of these places haven’t had a problem since the early 1960s, and some people are taking a view that it’s not going to happen to them and are happy to accept cover on that basis.”

Residents urged action to decrease the risk of flooding.

Keith Sprague, St Thomas’ sub-postmaster, said the city council should contribute towards the cost of the defences.

He said: “We should take responsibility for where we live and so should pay a share.

“I think the most important thing is that we have something in place, whether it is here or something that alleviates the problem further up the river.”

Malcolm Leverton, 46, a resident of St Thomas for the past 15 years, called on South West Water to pay for the work.

Mr Leverton said: “The water company should pay a massive chunk.

“Instead of paying a dividend to shareholders for the next couple of years they could help to fund this.

“Our water rates are the highest in the country.”

Fellow resident Roger Staddon, 54, has lived in St Thomas for nine years.

He said: “I don’t think the flood defences have been tested to their limit. Once the river reaches the top of the concrete steps there is nothing but soil to hold it back.”

Mark Aggett, the landlord of the Royal Oak pub in Okehampton Street, said: “Last year they drained the River Exe so that they could do some repair work. Why don’t they dredge it so that it could take more water? They used to dredge it but it is full of silt now.”

Alphington city and county councillor Vanessa Newcombe said: “The Government needs to act urgently to increase spending on flood defence schemes in high-risk areas such as Alphington and St Thomas, and meanwhile should continue to subsidise insurance policies for homes and businesses in these areas.”

Rob Hannaford, city and county councillor for St Thomas and Exwick, said: “It’s absolutely essential that with the effects of climate change and so many new homes built on Exeter’s flood plains over recent decades since the severe flooding of 1960, that enhanced flood protection measures are put into place. Agreement must be reached so that central government meets its strategic obligations for most of the costs, with Exeter City Council also making a fair and reasonable contribution, with other funding coming in from South West Water, as their sewerage works would cease to operate if severe flooding occurred.”

A spokeswoman for South West Water said it was working hard to protect its infrastructure from the effects of flooding. He said: “We are committed to protecting the essential services we provide for our customers from the impacts of climate change and flooding is identified as one of the biggest risks. In Exeter we have already completed a scheme to protect the city’s water supply from flooding.

“Up until 2015, we are spending £2.3 million on flood protection measures at 47 of our sewage treatment works and sewage pumping stations. These improvements include a £286,000 scheme at Countess Wear Waste Water Treatment Works, raising walls and electrical controls away from potential flood levels.”

The Environment Agency says there are two options – building up the defences in Exeter or building a reservoir further up the Exe, in Mid Devon. A spokesman said: “The agency has assessed that the Exeter Flood Defence Scheme, constructed in the 1960s and 1970s, provides the city with an approximate one in 40-year return period standard of protection. We are currently developing proposals to significantly improve this standard of protection and this project is one of the Environment Agency’s top priorities in the South West.

“We have assessed a wide range of options, with the conclusion that the economically optimum solution is to raise and extend the existing defences to a one in 100-year return period – a one per cent annual flood risk – standard.

“This would reduce the level of flood risk for around 3,850 residential and commercial properties and is estimated to have a whole-life cost of around £25 million.”

The spokesman added: “Under Defra’s funding policy for flood defences, such a scheme would be eligible for around £13 million of Flood Defence Grant in Aid.

“The balance will need to be raised locally from third-party contributions.

“We have considered an alternative option of providing a similar standard of protection through the construction a flood storage reservoir upstream of Exeter.

“This would be eligible for a similar amount of grant in aid, but could cost up to twice as much as the ‘in Exeter’ option, so a significantly greater amount of third-party contributions would be needed.

“We believe that the best way forward is for the Environment Agency to work in partnership with Exeter City Council, Devon County Council and other key local players to promote flood defence improvements in the city and raise the local investment needed – and we have started discussions to that effect.

“The agency will do all in its power to work in partnership to secure the flood scheme that Exeter deserves and thereby protect lives and the economic prosperity of the city.”

The agency has told the Echo that it favours a scheme in the city running from Station Road to Countess Wear, rather than one further up-stream. Suggested improvements around Station Road and parts of Exwick include raising the height of existing walls and banks and building new ones.

The spokesman added: “The Quay’s historic and cultural importance poses challenges in terms of increasing the area’s flood protection.

“With this in mind, the Environment Agency is looking at innovative flood defence solutions that will minimise any visual impact on this popular area of the city.

“Proposals within the River Exe include lowering Trew’s Weir and modifying the flood channel to increase the capacity of the river at times of high flows.”