Homeowners in flood-prone areas will have access to more affordable home insurance from April 2016. First announced in 2010, the scheme, named “Flood Re”, was sparked by changes in weather patterns as well as a shift in areas now affected by flooding. It is a welcome relief to many homeowners.
What is Flood Re?
Flood Re is a joint scheme between the Government and the insurance industry that allows insurers to offset the expense of a flood claim by providing access to a central fund specifically for claims of this type.
It is reported to cap the cost of flood insurance for around 350,000 homes (Association of British Insurers, 2016).
How is it funded?
Every insurer in the UK has agreed to pay a small levy for all the home insurance policies they have, in order to provide the central fund for flood claims. This means that it is very likely that every household will see a slight increase in their home insurance premium at renewal.
To learn more about “Flood Re” please visit www.floodre.co.uk.
How will it affect my home insurance?
We urge you to review your home insurance on renewal if the risk of flood has affected you in any of the following ways;
- You’ve struggled to get cover
- You’ve paid a high premium because of flood risk
- You’ve paid a high excess on flood claims
This legislation change has impacted how insurers calculate home insurance premiums. Some members may find some insurers are more prepared than others when shopping around.
We’re ready and we’re here to help BMA members with their home insurance.
Request a quote
If you would like a quote, you can complete our online form or contact our specialist team on 01823 250580.