With so many insurance flood claims in the UK in recent years insurance companies have pulled up the drawbridge. If you have experienced any type of weather related flooding to your property, and that includes secondary flooding, you may find that getting affordable comprehensive insurance is not easy and in some cases impossible.
The government has been promising it would address those issues and has been working with insurance companies to set up a new affordable scheme, and finally Monday Flood Re is launched.
That scheme may have finally launched after a series of delays but there are exclusions.
Flood Re dedicated website explains;
Flood Re is a reinsurance company, which means it enables insurance companies to insure themselves against losses because of flooding. Unlike other reinsurance companies it is a not-for-profit fund, owned and managed by the insurance industry, and it has been designed to address a specific issue for a specific period. It’s also publicly accountable.
When you purchase or renew your property insurance the Flood Re scheme should enable you to get affordable cover from your insurer. You will do nothing but your insurer will be able to offset your known flood risks, at least in many cases;
The majority of homes in high flood risk areas will be eligible for Flood Re, but there are some exclusions. Properties built after January 1st 2009 are not covered because it’s important not to incentivise home-building in flood risk areas. This cut-off date was introduced for a previous agreement on flood insurance between insurers and the Government which began in 2008 so this is being rolled over to Flood Re. Flats in leasehold blocks containing four or more homes are also excluded.
Overall though Food Re is good news for flood victims.
The government pledged to work with insurers to enable people who have experienced home flooding to buy affordable cover and although launching the scheme has taken longer than expected it is finally here.
Ahead of the scheme-unless you declare any flooding which has affected your property in a given timescale future claims could be null and void but mention the word "flooding" when you apply for building, home and property insurance in the UK and it has been a case of "no room at the Inn." Some insurance companies have been offering limited cover; in some cases only available by paying huge premiums or by paying hefty flooding excess premiums.
If you have been flooded the next time you renew your insurance will be the big test.
However if you are a flood hit business you will be excluded from Flood Re help.
But expect the scheme to be tweaked in the future and possibly insurance premiums hiked up to cover costs.