Flood Re was launched by the government and the insurance industry in April 2016 to help households in flood risk areas find more affordable home insurance.
The Scheme exists to promote the affordability and availability of flood insurance for homeowners across the UK.
Flood Re takes the flood risk element of home insurance from an insurer in return for a premium based on the property’s Council Tax band. In addition, we charge the insurer an excess of £250 on the flood part of the policy. Because Flood Re’s activities are subsidised by an annual levy on insurers of a total of £180m, the premium we charge insurers is below the rates insurers would normally charge on properties at the highest risk of flooding.
Flood Re sits in the background instead of interacting directly with consumers. People should check the Flood Re website to see which insurance providers are participating and find out more about the scheme. Those with insurance should speak to their current provider and everyone should be prepared to shop around as the market becomes increasingly competitive.