The last few years have seen various parts of the UK battered by storms and floods. To try and help home owners April 2016 sees the introduction of a national scheme to help provide access to affordable flood insurance – Flood Re.
What is Flood re?
If you haven’t heard about the Flood Re scheme then let us explain. Flood re has been created as a not-for-profit flood reinsurance fund, set out by the Government in conjunction with the insurance industry.
Reinsurance is the insurance set in place for insurers, so that they don’t have to bear the full cost of hefty claims pay outs. Insurers will place high-risk homes, ones that they feel unable to insure themselves, into the fund. This is to enable homeowners in the UK, considered at high risk of flooding, access to affordable home insurance cover.
So how much is it likely to cost?
Flood premiums will be capped based on Council Tax bands, with homes in Band A paying less than those say in Band H, thus creating a limit on how much flood insurance will cost for the homeowner. These premiums, along with a levy on all household insurers of £180 million a year will go into the fund to help pay out any claims.
Can everyone access this scheme?
It is worth noting that Flood Re will have certain exclusions. Homes built after 1 January 2009 will be excluded in order to avoid unwise building in high risk flood areas as will homes in the Isle of Man and Channel Islands. Flood Re has been designed for residential properties however leasehold blocks may be able to obtain buildings cover via the scheme if the building contains 3 units or fewer, and the freeholder(s) is a resident of one of the units to be insured.
For more information about Flood Re visit the Flood Re website or get in touch with us to discuss your property.
Print 
PDF
