OWNERS of properties in the Teignmouth town centre area may not be able to obtain building insurance cover because companies are scared of a perceived flooding risk.

Millions of pounds have been spent over the last few years on protecting the area, and Shaldon, from flooding by the sea and river, but it appears many of the major insurers are either refusing any cover at all, or imposing massive hikes in premiums.

And one householder fears that if the new policy by the insurers is widescale, it could also devalue many properties.

Shipping agent and former town councillor Don Baldey, who lives in Northumberland Place, was shocked to learn that his company would not be renewing his policy because of ‘new guidance’ by underwriters.

‘It seems that many Lloyds underwriters do not want to cover the area where I live anymore.

‘It is ridiculous. The flood defences have worked well, and the town centre, which is below sea level in places, has not been flooded now for many years.

‘I think they are running scared because of the massive flooding that has occurred in recent years in other parts of the country. But that was from rivers, and the Teignmouth back beach area is now well protected from any threat.

‘I have lived in the same property for 32 years, and there has never been any flooding, even before the defences were built.

‘My insurers did not want to insure me even without flood cover, and it is a huge worry.

‘But luckily my broker did eventually find me a smaller company that would give cover, but it was at the cost of a 70 per-cent hike in the premium, which is now almost £1,000.

‘Most property owners will not know their situation until renewal time, and I think it is outrageous,’ Mr Baldey declared.

Mr Baldey added: ‘Ironically I was chairman of the back beach flood defence committee, and remember telling residents in the area that without a protection scheme, their household insurance might not be renewed, or they would face huge hikes in premiums.

‘The scheme has worked exactly as the engineers promised, but now it appears many insurance companies have taken fright for no good reason.’