In the past twelve months insurers have paid out millions to flood victims. Today insurance companies have confirmed that future flood related claims will still be honoured.

Tewkesbury in Gloucestershire was just one of many areas hit by last summer's floods. With the waters came devastation; thousands were forced out of their homes. The cost to the insurers - £3 billion - and for those affected, a new fear that they now wouldn't be able to get insurance against the waters coming back. Just last month, insurers repeated a warning that the Government had to do more to prevent flooding if they were to continue to offer cover.

The Association of British Insurers had threatened to withdraw protection from flood hit areas like this but now a compromise has been reached with the Government promising to invest more into flood defences. Its a deal that has reassured the insurance companies and brought a sigh of relief to thousands of house owners.

Justin Jacobs, Association of British Insurers: "Well what we have agreed with the Government is that if they can make sure that as many people as possible are protected, we'll be able to make sure we can offer affordable insurance to all our customers who want it. But the pressure remains on the Government because they must deliver those defences to people in order to make sure we can offer affordable insurance."

But for some homeowners there's a hidden twist; Paul Hendy from the National Flood Forum says many victims have seen massive increases in their insurance excess, with one Hull family having to pay the first £50,000 of any future damage.

Paul Hendy, National Flood Forum: "When the insurance company come to you and say well actually we want to put your excess up by £50,000 then that immediately gives you a fear factor. How are you going to afford £50,000? Most people that are speaking to me at the moment have gone up on a policy to £10,000 and that is still unrealistic."