This month Flood Re celebrates its first birthday and it’s been a busy year. If you haven’t heard of Flood Re it’s a government backed scheme aimed at helping homeowners at risk of flooding find affordable insurance. Flood Re has been a real success story underpinning 130,000 home insurance policies in its first 12 months of life.
Flooding is never far from the headlines and with climate change the situation is likely to get worse. The impact of flooding can be devastating with households taking months or even years to recover. To make matters worse homes that had been flooded, or were at high risk, found it increasingly difficult to get insurance. The risks were simply too high and insurance providers either refused cover or charged prohibitively high premiums and excessive excess.
Something had to be done and it was up to the insurance industry and the government to throw homeowners a lifeline. Flood Re is a ‘reinsurance’ scheme which works by providing a central fund of £180million to cover the ‘flood risk’ element; thereby allowing insurers to offer sensibly priced cover. It’s funded by charging a levy on all household policies and pay-outs are split between all providers who have signed-up to the scheme.
Industry figures show that the uptake of Flood Re policies has been impressive and the statistics have been backed-up by independent research. According to Consumer Intelligence prior to the launch of Flood Re just 9% of flooded properties could get two (or more) insurance quotes and now the figure is up to 95%. More choice is one thing, but what about price? Competition has driven down costs and 80% of claimants have seen their premiums halved. Flood Re has also set a cap of £250 on claims excess, which could previously run into six figures.
Commenting on the findings Mark Hoban of Flood Re said “Flood Re has changed the insurance market so that tens of thousands of households that have been flooded can access more affordable insurance. We are proud that this scheme has been able to help people whose lives have been devastated by flooding.”
Flood Re is great news for homes at risk of flooding and better still we have got access to some of the most competitive policies from the biggest names in the business. As an independent broker, we’ll compare cover to help you find the right policy at the best price. To find out more visit our flood risk insurance page or Tel: 0161 874 4171 to speak with a member of our team.