Flood Re: What is it and can it help me?

Flood Re is a fund that is designed to help the estimated 350,000 UK households that are at risk of flooding get affordable home and contents insurance.

It’s a not-for-profit scheme that comes into effect from April 2016. However, it will take time for insurers to be able to pass on the benefits of the scheme to their customers who have been impacted by a flood.

Over the next five 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 which have come after recent extreme weather events, and have pushed up premiums for homeowners in high flood risk areas.

The aim is to bring down the cost of providing flood cover for insurers, so they can pass those savings on to those whose homes are at risk of flooding.

flooded street

Here's how it works

  • 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 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 businesses.

Houses must fall within the Council Tax bands A to H, and they must have been built before 2009.

Find out if your home is in a flood area by searching your postcode using this online map from the Environment Agency.

What does it mean for you?

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 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.

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