Flood Re

What is Flood Re?

Flood insurance is usually included as part of household buildings and contents insurance in the UK. However, over time, increasing numbers of people living in flood‑risk areas struggled to access cover, or could only do so at very high cost.

Flood Re was created to help address this problem and make flood insurance more affordable for households at risk.

Flood Re is a temporary government‑supported reinsurance scheme, introduced in April 2016, and is currently planned to run until 2039. Its purpose is to support a transition towards a more affordable and competitive flood insurance market.

How Flood Re works

• Where insurers can offer reasonably priced flood cover in the open market, they will continue to do so.

• For properties at higher risk of flooding, insurers can pass the flood‑risk element of the policy to Flood Re for a fixed reinsurance premium.

• Each insurer continues to assess flood risk using its own criteria.

• Insurers remain responsible for selling policies and managing claims in the normal way.

• Flood Re reimburses insurers for the flood element of claims for homes accepted into the scheme.

  
  

To ensure Flood Re has sufficient funds:

• All UK household insurers pay a statutory levy, totalling around £180 million per year across the industry.

• This equates to roughly 2–3% of home insurance premiums.

  
  

Flood Re also:

• Reports annually to Parliament

• Reviews the scheme at least every five years to assess progress towards a free market for flood insurance

  
  

Flood Re will end in 2039, with the intention that flood insurance will then operate fully within the open market.

What this means for customers

Flood Re charges insurers a set reinsurance premium for each eligible household, based on Council Tax bands rather than individual flood risk

Key points:

• Premiums increase annually in line with the Consumer Price Index (CPI)

• Premium levels are reviewed every five years

• Flood Re applies a £250 reinsurance excess per flood claim (note: insurers may apply their own policy excesses)

• Insurers continue to compete in the marketplace and set overall home insurance premiums

  
  

Customers should be told by their insurer if their policy is supported by Flood Re.

What Flood Re covers

Flood Re only applies to flood damage, as defined in legislation. It does not cover:

• Storm damage

• Escape of water (e.g. burst pipes)

  
  

Eligible properties must be:

• Residential properties paying Council Tax

• Insured in the name of individuals, not businesses

• Occupied by the owner or their immediate family

  
  

What Flood Re does not cover

Flood Re does not apply to:

• Homes built after 1 January 2009

• Small businesses and most residential landlords (there are some limited exceptions)

• Buildings insurance for leased properties with more than three residential units, such as large blocks of flats

  
  

Further information and support

Flood Re operates its own website with detailed, industry‑focused guidance and eligibility information. It is not an insurance company or broker. The Flood Re website lists insurance companies that are participating in the scheme.

The National Flood Forum - 01299 403 055 also offers independent support and guidance to people affected by flooding, including help understanding insurance options. While we cannot give specific insurance advice, we can help people navigate the system and explore available routes.

Links to external websites are provided for information only. The National Flood Forum is not responsible for the content or availability of external sites and does not endorse any external organisations, services, or advice.