Flood Re: What is it and can it help me?
Flood Re is a scheme that makes flood insurance more affordable and more widely available for people living in high flood risk areas. The Flood Re start date was 1st April 2016, and the scheme will run until 2039.
Over the next few years, the insurance industry will pay £180 million a year into Flood Re, which it will fund by potentially adding £10.50 to every household policy – regardless of whether you live in a high flood risk area or not.
It’s a reaction to the huge number of flood insurance claims that have been made following recent extreme weather events, which have pushed up premiums for homeowners in high flood risk areas.
The aim is to bring down the cost of providing home insurance with flood cover for insurers, so they can pass those savings on to those whose homes are at risk of flooding.
How does Flood Re work
- Your home and contents insurance policy contains elements that cover you against different risks, including fire, theft, storm damage, subsidence, flood and more.
- If you live in a high flood risk area, your insurer can pass the flood risk element of your cover to the Flood Re fund.
- Households covered by the Flood Re fund still claim from their insurer as normal in the event of a flood, and the insurer then claims back the money it has paid out from the fund.
- Because Flood Re will cover most of the cost of the claim, it makes it easier for insurers to cover high risk homes against flooding.
- Insurers can then pass that reduced cost on to customers at risk, which should help to bring down the cost of premiums and the excess paid on flood claims by high risk homes.
- Remember – the scheme only affects the flood element of your insurance policy. Your insurer will still need to cover any damage to your home against fire, theft and other risks.
Who qualifies for Flood Re?
Only residential houses in flood areas qualify for Flood Re. This does not include flats, privately-rented homes or commercial property – they’re not covered by Flood Re.
Houses must fall within the Council Tax bands A to H, they must have been built before 1st January 2009, and they must be located within the UK (excluding the Isle of Man and the Channel Islands).
Find out if your home is in a flood area by searching your postcode using this online map.
What does Floor Re mean for your home insurance?
The way that you buy flood insurance and make a claim will not change. When you take out a policy, your insurer will consider your home’s risk of flooding when they calculate your premium.
If you need to make a claim, then just contact your insurer as usual. The Flood Re fund will reimburse your insurer for any successful claims for flood damage and you won’t have to get involved.
For more information, check the official Flood Re website.
If you’ve been affected by flooding or are concerned because you live in an at-risk area, take a look at our dedicated Flood Guides.