If you own a property in the UK that’s in an area prone to flooding then the Flood Re scheme will be of great interest to you. Below is an explanation of what it is and how it works.
Flood Re is a reinsurance scheme that was set up by the government in April 2016. The idea is to provide insurers with a way to protect themselves against big losses as a result of claims for flood damage. This, in turn, means they can offer affordable flood insurance to people who live in homes that are at major risk of flooding. Homeowners will still take out a policy in the usual way – directly through their insurance provider. However, under the Flood Re scheme, insurers will now be able to recoup their losses.
The cost that homeowners pay will depend on the council tax band their house is in. For Band A homes, the price of a buildings and contents policy is capped at £210. This rises to £276 for Band B and D homes and £1,200 annually for Band H homes.
Where does the funding come from?
Flood Re is funded by home insurers themselves, who contribute a total of £180m to a central fund each year. Insurers do have the option to pass this cost on to their customers but the annual rise even if they choose to do this is usually not more than £10 per year and in a lot of cases, much lower.
Am I eligible?
Approximately 350,000 homes eligible for Flood Re. These are the homes that are considered to be at greatest risk of flooding.
The best way to find out if your home is eligible for Flood Re is by contacting your insurance provider. If you happen to live in one of the 350,000 homes that are eligible for the scheme then there’s a good chance you’ve already been contacted by your insurance provider to inform you about it.
Minimising flood damage
If you live in a property that’s prone to flooding, even if it’s not a Flood Re-eligible home, then you should know how to prepare and minimise damage as much as possible. In addition to always keeping on eye on local weather forecasts, you should also make sure you have plenty of sandbags or hydrosacks in your shed so you can stack them at doorways to keep as much water out of your property as possible. You should always take plenty of pictures of your property – inside and out – to make insurance claims easier.
How to find out if a property is at risk of flooding
If you’re currently thinking of purchasing a new property and want to know if it’s at risk of flooding you can use the Environment Agency’s postcode search tool to check.
Get flood insurance quotes from specialists
When it comes to flood insurance, you don’t want to leave anything to chance. Getting cover from a specialist provider is always recommended, as is getting quotes from as many providers as possible. This will help you to save money and get the best deal you can. To get quotes from a panel of specialist flood insurance providers now, simply click the green button below.