Launch of Flood Re provides a lifeline for homes at risk of flooding

flood rubber bootsAfter the wettest winter on record the clean-up bill for the damage caused by the floods is estimated to cost insurers an eye-watering £1.4billion. Rising floodwaters have been matched by rising household insurance premiums and with climate change the problem looks likely to get worse.

Homeowners making flood claims can expect insurance premiums to triple (adding nearly £400 to the average cost of cover) while future claims excesses can spiral into five figures. The Environment Agency estimates that one in six homes are at risk of flooding and that means five million households struggling to find sensibly priced insurance.

The forecast for homes at risk of flooding looked pretty bleak until the government and the insurance industry provided a much needed financial lifeline called Flood Re. Launched at the beginning of April the ‘reinsurance’ scheme provides insurers with a pool of money which can be used to pay for the flood element of a claim.

With the risky flood element of a policy covered by Flood Re; insurers will be able to offer affordable cover to homes in flood prone areas. While the future looks much brighter it’s taking time for insurers’ IT departments to catch-up with the changes and only a handful of providers are currently offering cover.

As an independent broker that puts Quoteline Direct in a unique position: we are one of the very few intermediaries who can compare policies to find the most competitive cover.

Homeowners facing sky-high premiums (or prohibitively high excess) don’t need to wait until renewal to change policies and can get a tailored quote from our team today. To find out more visit our home flood insurance page or Tel: 0161 874 4171 to find out how much you could save by switching providers.

 

 


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