FloodRe - affordable flood insurance

What is FloodRe?

FloodRe launched in April 2016 to promote the availability and affordability of flood insurance for an estimated 35,000 homeowners across the UK who are at risk of flooding. FloodRe is a private reinsurance company developed at the request of the Government to address the increasing problems people at flood risk face in getting reasonable cover. FloodRe is for households whose homes were built before January 2009, have a Council Tax band and are insured in the name of an individual. It is not for leasehold flats in blocks of four units or more, nor is it for businesses.

How does it work?

FloodRe will introduce a levy of approximately 2% onto all policies which will raise in the region of £180m per annum.

Insurance companies will be able to insure homeowners without taking into account their flood risk - thus providing normal premiums and an end to the 'uninsurable' - and then pass on the flood risk element of the claim to FloodRe.

Excesses will be capped at £250 and people will once again be able to access the competitive market. Insurance companies don't have to use this scheme but it will be beneficial to them to do so. 

Why does FloodRe not apply to properties built after 1 January 2009?

Because planning policy came into force from this date meaning developments had to account for their flood risk. 

Where can I find out more?