There are over 350,000 properties at high risk of flooding in the UK, and Flood Re is a new way to help these households source affordable home insurance and it launches on April 4th 2016.
The scheme is a joint industry/Government sponsored reinsurance fund owned the UK insurance industry. The scheme is open to all UK household insurers and provides them with an opportunity to purchase reinsurance for the flood element of an insurance policy. With insurers being able to pass the flood risk onto Flood RE they can in theory widen their appetite for such properties thereby increasing the choice of insurer for customers.
The majority of homes in high flood risk areas will be eligible for Flood RE, but there are some exceptions, these are:
- Properties built after 1st January 2009
- Blocks of flats consisting of more than 3 units
- Properties outside of England, Wales, Scotland & Northern Ireland
- Policies issued in a company name
- Let Properties
- Commercial used outbuildings
You will still buy your Household insurance in the usual way and will not deal directly with Flood RE. When the cost of the flood risk part of the policy climbs above a certain level, the Insurer will approach Flood RE and place that part of the policy on the scheme.
If you have to make a flood claim, the repair works will be managed by the insurer is the usual way, with the insurer then recover the costs from Flood RE.
If you have any questions about Flood RE and how it will affect you please do not hesitate to contact us.
To find out more about our Services please contact our Hull office on +44 (0) 148 257 9500 or our Leeds office on +44 (0) 113 244 2288, or fill out the form below: