Flood Re is the new scheme launched by the government set to ease the strain of insurance premiums on those living in high risk flood areas.

The scheme, named 'Flood Re', is the result of a partnership between the government and some of the biggest insurance providers in the sector. Customers can buy their home insurance as normal without any extra effort on their part. The extra insurance costs which usually come with claiming home insurance are re-directed to Flood Re, which is funded by a levy on the insurance industry. Customers will continue to buy their home insurance in the same way as before, and all the contact will be directly with their chosen insurer. If a customer needs to make a claim, they should contact their insurance company directly, just as they do now. Flood Re will work ‘behind the scenes’ with the insurance company.

Under previous insurance policies, the excess in the event of a flood could reach up to &2500 in high flood risk areas and if there is a history of flood damage in the area, the excess can reach up to &25,000.
Floods Minister Rory Steward said, "flooding is devastating. Nothing can take away the distress it causes. But affordable flood insurance will help people get back on their feet more quickly and secure their futures. So the government and the insurance industry have worked together to establish Flood Re to provide affordable excesses and premiums for people in flood effected homes. It's great news that Flood Re is now open for business. It is a fantastic step forward - making flood insurance affordable for people regardless of where they live."

What this means for the customer
For those living in a flood risk area their property and possessions are covered by the new scheme and they can make claims on their insurance without incurring the infamous high premiums.
However there are some who are excluded from the benefits of Flood Re. Buildings built in 2010 onward, businesses and buy to rent properties do not receive the benefits on the scheme.
The cost of funding the system is also met by a levy on all home insurance policies - not just those who participate in the scheme. The average home owner can now expect the cost of their home insurance to rise by up to &10.50 annually, even if they do not live in a high risk flood area.

Why is Flood Re necessary? 
In the face of the rising flood risk, we have estimated that 350,000 flood risk UK households would struggle to obtain affordably priced flood insurance without a scheme like Flood Re.
The Government and others agreed with us that the Flood Insurance Statement of Principles established in 2000 had become unsustainable and that a new approach was needed to help flood risk households obtain affordable flood insurance. The Statement was only ever intended to be a temporary measure and restricted customer choice as insurers only had commitments to their existing customers, and new insurers can decide to whom they offer flood insurance.

If you have been struggling to obtain home insurance and would like some help - get in touch with us today!