VICTIMS of the Boxing Day floods have welcomed a lifeline to help with future insurance problems through a Government-backed relief scheme.

They could be saved hundreds of pounds on premiums and some properties could now be insurable for the first time - thanks to the initiative dubbed "Flood Re".

It is estimated that across Yorkshire and Humberside some 39,239 homeowners could benefit with a national total of about 350,000 addresses.

The scheme, which will be funded through a levy paid by insurers, equivalent to 2.2 per cent of each policy premium arranged, will absorb the possible costs associated with properties in a flood risk area.

Flood Re acts as a reinsurer to cover the additional risk.

Houses built since 2009 will not be covered by the scheme in a move to discourage developers from building on land at risk of flooding.

Businesses are also excluded and also unoccupied homes.

Sixteen bungalows in Branksome Drive, Shipley, were left under four feet of water when the Aire burst its banks and are all unoccupied and under repair.

Resident John Wood, whose home escaped but who took a dramatic video of the flooding, said it was a terrifying sight.

"The river tore through carrying logs and debris, one woman is still staying with us while her home is repaired.

"I think this scheme sound like a good idea."

Neighbour Nicky Gilbraith was on holiday in Bali when the waters came.

"I'd left my car on the road and it was flooded and ruined. Luckily I'm on the side which stayed dry," she said.

"I know people struggle with insurance and it sounds like this will help."

Some 20 properties in Castlefields Lane, Crossflatts, were swamped and are still not inhabitable, said resident of 30 years Val Hudson, whose home was badly hit.

"A lot of the cottages couldn't get insurance before the floods so anything that helps will be good."

Zoe Forbes' house sits above the still visible watermark and added: "I really welcome it - we're still worried if our insurance will bump up to a ridiculous levels."

Brendan McCafferty, chief executive of Flood Re said:"Consumers should check the Flood Re website to see which insurers are signed up, speak to their current insurer and be prepared to shop around. When buying a policy they should make sure it is the best one for them, not just the cheapest."

He added: "If you're in a high flood risk area then Flood Re may also mean having a choice of insurance provider for the first time in many years."

The Association of British Insurers said fully drying out, repairing and restoring a flooded home often costs between £20,000 and £45,000.

Floods Minister Rory Stewart said: "The Government and the insurance industry have worked together to establish Flood Re to provide affordable excesses and premiums for people in flood-affected homes."