Flood Re is a scheme created in 2016 to allow homeowners in high-risk flood areas to access affordable home buildings and contents insurance. An estimated 350,000 UK households could benefit from the scheme.
How does Flood Re work? How Flood Re works is that every UK insurance provider has to pay into the scheme. This creates a £180 million pot that is used to cover flooding claims. It means that when you buy your home insurance, your insurance provider can get reinsurance from Flood Re. That way, if your home floods, your insurance provider can claim the money they pay you from the Flood Re fund.
In some ways, Flood Re is no different from any other reinsurance company. It receives premiums from insurance providers and pays back their claims. But there’s one big difference. Without Flood Re, insurance providers probably would not insure people living in flood zones, leaving many people without cover. That is why the government stepped in and worked with the insurance industry to set up Flood Re as a not-for-profit scheme. As a result, many households pay far less for their home insurance than they would otherwise have to.
Am I eligible for Flood Re? If your home is in a flood-risk area, you might have been told that you will not get insurance. However, do not give up hope – your home may be eligible for Flood Re. To qualify, the property must: be in a council tax band have been built before January 2009 be used for residential purposes. Also, you or your immediate family must live in the property some or all of the time. And your insurance policy must be in your name.
Who isn’t eligible for Flood Re? Some buildings are not eligible for Flood Re – usually those used as businesses, rather than homes. Examples of buildings that would not qualify include: buy-to-let properties that don’t meet the above criteria guest houses and B&Bs that pay business rates housing association properties farm buildings static caravans used as holiday lets
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