Flood Re Insurance Scheme Goes Live

The Flood Re insurance scheme designed to help insurance companies provide affordable cover for properties at high risk of flooding is now operating, after gaining approval from financial regulators.

Flood Re will enable insurers to offer competitive premiums and lower excesses for an estimated 350,000 homes across the UK located in areas at high risk of flooding.Flood Re was developed by the Government, together with UK insurers.  They claim the scheme is a world first.

Floods Minister Rory Stewart said:

“Flooding is devastating. Nothing can take away the distress it causes. But affordable flood insurance will help people get back on their feet more quickly and secure their futures. So the government and the insurance industry have worked together to establish Flood Re to provide affordable excesses and premiums for people in flood effected homes.”

The Flood Re scheme is funded via a levy on the insurance industry.  Customers will buy home insurance as normal but the extra insurance costs associated with a high risk of flooding will be passed on to Flood Re.

Brendan McCafferty, Chief Executive of Flood Re, said: “I am delighted to announce that Flood Re is now live and ready to accept policies. We have been working tirelessly to ensure we’re ready so that consumers can start benefitting from greater choice and more competition in the insurance market. This should make flood cover more affordable and accessible to those in high flood risk areas over time.

“Consumers should check the Flood Re website to see which insurers are signed up, speak to their current insurer and be prepared to shop around. When buying a policy they should make sure it is the best one for them, not just the cheapest.”

A list of insurers signed up to the scheme is available via the Flood Re website:  www.floodre.co.uk.

 

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