An insurance scheme designed to help people who live in flood risk areas get affordable home insurance launches today.
Flood Re is not a home insurer itself but will work behind the scenes with existing insurance companies so that people who own and live in homes that are most likely to flood can shop around more easily to find policies with “affordable premiums and excesses”.
A list of the insurers that will be using Flood Re from Monday is now available here, with more to be added in coming months.
James Dalton, director of general insurance policy at the ABI, said: “It’s great to see so many insurers ready to make use of Flood Re from launch. Monday is just the start of a process and we know more providers will join them over time, bringing even more choice for people with homes at risk of flooding.
“Insurance is an essential safeguard for your home and belongings. People in flood risk areas not being able to access affordable cover was a major concern, and why the insurance industry went to great lengths to design and create this world-first solution along with government.”
Despite this, research by Admiral suggests more needs to be done to educate those affected as only one in seven of us have heard of the scheme.
To mark the launch of Flood Re, Admiral surveyed 1,000 homeowners about their views on flooding and its impact. It found that despite 67% believing severe flooding events will become more frequent in coming years, fewer than 15% said they worry about their own home flooding.
Relatively few people surveyed (7%) said they have suffered a flood in the past, but it’s clear that for those that were, it was devastating. Admiral asked them the worst thing about their own flooding experience. The highest number (21%) said the destruction of their furniture and carpets while 16% said it was the emotional stress it caused.
Noel Summerfield, head of household at Admiral, said: “Although Flood Re won’t prevent flooding, it is good news for homeowners who have been previously flooded or who have had difficulty getting insurance because their home is at risk of flooding. However our research shows only 15% have heard of the scheme. Flood Re works by charging all home insurers a fee and it’s this fee along with other charges to insurers using the scheme that pays for any associated flood claims.
“The Environment Agency estimates that one in six homes are at risk of flood in England alone. Most experts agree that incidents of flooding are likely to become more commonplace, so perhaps those considering buying a home should do more research around the risk of flood.”