What’s it all about?
Put simply, Flood Re should make it easier for people in flood-risk areas to get affordable household insurance. Thousands of homeowners and residents currently struggle to get buildings and contents insurance which creates anxiety, stress and frustration. The National Flood Forum has been working with government and the insurance industry for several years to come up with a solution to this problem. It is hoped that Flood Re will be the game changer that enables more people to take out affordable insurance to protect their homes and provide peace of mind. Introduced in April 2016, it is expected that up to 350,000 households will benefit from this new scheme, which is a collaboration between the insurance industry and the government.
It is increasingly accepted that terms like ‘unprecedented flooding’ and ‘exceptional event’ are inaccurate descriptions of what should realistically be seen as recurring events in some parts of the country. Managing the impacts of flooding therefore needs to become a national priority. For years, the National Flood Forum has been championing the cause of thousands of people who are frustrated by not being able to get insurance, or at least not at an affordable price. We hope Flood Re will be a positive step towards making the industry more competitive so that customers can shop around to get the best deal at the right premium for their needs.
For more detailed information about Flood Re and how it will work please see the National Flood Forum’s Flood Re Explained
Significantly the Flood Re scheme is time limited, ending in 2039, after which flood insurance will return to the free market. This means there is an onus of responsibility on Government and all of us, including the insurance industry and Flood Re to ensure that the impact of flooding is reduced so that affordable insurance is widely available.
Every five years Flood Re will be required to report to government about how it plans to make the transition back to the free market. The first of these transition reports was set out in February 2016 and can be viewed here Flood Re Transition Plan Feb 2016
For information direct from Flood Re about how it will operate and some FAQs please visit the Flood Re website.