Flood Re and what it means
Flood Re will launch in April 2016 and is designed to ensure affordable flood insurance is available for those homes at the highest risk of flooding. With the introduction of the scheme, Flood Re will increase the availability and choice for home owners, making it easier to shop around to get the best deal.
You will continue to purchase your home insurance in the same way as before, whether that’s through a price comparison site, directly from an insurer or through a broker. Once you have purchased your policy you will always deal with your own insurer even if you need to make a claim. You will not need to contact Flood Re directly.
If you have experienced the terrible effects of flooding, and have made a claim with your insurer, they will process your claim and ensure any flood damage is repaired. The introduction of Flood Re means you will have peace of mind that, even after a flood claim, you should still be able to find insurance with affordable premiums and excesses.
Qualifying properties which may be ceded to Flood Re – Properties will be eligible only if they meet all of the following criteria:
1. The insurance contract must be held in the name of, or on trust for, one or more individuals or by the personal representative of an individual;
2. Have a domestic Council Tax band A to H (or equivalent);
3. Used for residential purposes;
4. Have an individual premium;
5. The holder of the policy, or their immediate family, must live in the dwelling for some or all of the time (whether or not with others) or the dwelling must be unoccupied;
6. Built before 1st January 2009 (if a building is demolished, built pre 1st January 2009, and rebuilt, the new property is still eligible);
7. Located within the UK comprising England, Wales, Scotland and Northern Ireland ( excluding the Isle of Man and the Channel Islands).
For clarification and avoidance of doubt all of the following risk categories will be interpreted as being eligible as long as they also meet the criteria 1-7 above:
A. Bed and breakfast premises paying Council Tax and insured under a Home insurance contract;
B. Farmhouse dwellings and cottages. Where farmhouse dwellings are included in a commercial line policy, provided the insurer can split out the dwelling element (which meets the criteria 1-7 (inclusive) above), that part of the risk can be ceded to Flood Re;
C. Holiday/Second Homes;
D. Home workers;
E. Individual leaseholders protecting own property/flat;
F. Leasehold blocks will be eligible for buildings cover if they contain 3 units or fewer, and the freeholder(s) lives in one of the units to be insured;
G. Residential ‘buy to let’ Static Caravans/homes if in personal ownership;
H. Tenant’s / individual’s contents (even if living in large block/flats, where the buildings risk would not be eligible).
Domestic Properties not eligible for the Flood Re scheme:
A. Bed and breakfast premises paying business rates;
B. Blocks of residential flats;
C. Company houses/flats;
D. Contingent buildings policies (e.g. held by banks);
E. Farm outbuildings;
F. Freeholders/leaseholders deriving commercial income insuring blocks/large numbers of properties in a portfolio;
G. Housing association’s residential properties;
H. Multi-use under commercial or private ownership;
I. Residential ‘buy to let’ (which do not meet the criteria 1-7 (inclusive) above);
J. Social housing properties; (eligible for Contents cover but not eligible for Buildings cover);
K. Static caravan site owners (for commercial gain).
To see a copy of the leaflet explaining Flood Re as well as some general information about flooding please click here.
For further information about different aspects of flooding, please see the links below. If you have been flooded and need to make a claim please contact your insurer directly.
Understanding your flood risk
Scottish Environment Protection Agency
Natural Resources Wales
The Met Office
Know Your Flood Risk: The campaign for the increased awareness of flood risk.
Association of British Insurers
Flood Free Homes
How to prepare yourself in case of flooding
Support if you have been flooded
British Damage Management Association
Construction Industry Research and Information Association (CIRIA) Guide to repairing a property following a flood.
The Chartered Institute of Loss Adjusters: Guidance notes in the event of flood damage.
Information sourced from Flood Re