INSURANCE GUIDE
Flood Risk Home Insurance UK
Flood Re, cover options and how to find home insurance for properties in flood-risk areas.
TL;DR
- Flood Re is a government-backed reinsurance scheme that makes flood insurance available for eligible high-risk properties.
- Properties built after 1 January 2009 are excluded from Flood Re - newer builds in flood zones must find cover in the open market.
- A flood risk assessment from the Environment Agency helps identify your property risk level.
- Insurers can set flood excesses at several thousand pounds for high-risk properties - compare the excess as well as the premium.
What Is Flood Re?
Flood Re is a reinsurance scheme established jointly by the UK government and the insurance industry under the Water Act 2014. It allows insurers to pass the flood risk element of home insurance policies for eligible high-risk properties to the Flood Re pool, making it possible for those properties to obtain cover at a more affordable premium. Flood Re does not sell directly to consumers; it operates in the background, enabling participating insurers to offer flood cover for properties they might otherwise decline or price prohibitively.
Who Is Eligible for Flood Re?
Flood Re covers private residential properties in the UK that were built before 1 January 2009. Properties built on or after that date, businesses, and landlord properties are excluded. The scheme is intended as a transitional measure to allow the insurance market to develop risk-reflective pricing over time. If your home was built after 2009 and is in a flood zone, you must find flood cover in the open commercial market, which can be significantly more expensive or difficult to obtain.
Environment Agency Flood Risk Assessments
The Environment Agency publishes long-term flood risk assessments for properties in England through its online flood risk tool. Risk levels are classified as very low, low, medium, or high. Insurers use this and their own data to assess flood risk when pricing home insurance. Checking your property's flood risk rating via the Environment Agency before approaching insurers allows you to understand the likely pricing and whether Flood Re eligibility is relevant.
Flood Defences and Risk Reduction
Flood defence measures can reduce insurance premiums or improve access to cover for high-risk properties. Flood barriers, non-return valves on drainage, raised electrical sockets, and water-resistant plaster all reduce the damage from flooding events. Some insurers offer discounts for properties with certified flood resilience measures. The National Flood Forum can advise on appropriate measures for different property types and flood risk profiles.
Comparing Flood Cover
When comparing insurance for flood-risk properties, the flood excess - the amount you pay per flood claim - is as important as the annual premium. Standard excesses for flood claims can range from a few hundred to several thousand pounds for high-risk properties. Also confirm whether the policy provides like-for-like reinstatement (replacing flood-damaged materials with equivalent quality) rather than a cash settlement at depreciated value.
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Disclaimer
This guide is for general information only and does not constitute financial or insurance advice. Kaeltripton.com is not regulated by the FCA. Always read policy documents in full before purchasing cover.
Frequently Asked Questions
Can insurers refuse to cover homes in flood zones?
Insurers can decline to offer cover for any property at their discretion. However, for eligible pre-2009 properties, Flood Re enables participating insurers to provide flood cover by reinsuring the flood risk. If standard insurers decline, specialist flood risk insurers and brokers can often find cover, though premiums and excesses will reflect the risk level.
Does Flood Re cover business properties?
No. Flood Re is restricted to private residential properties. Commercial properties, buy-to-let properties, and properties run as businesses are excluded from the scheme. Commercial flood insurance for high-risk business premises must be arranged in the open market through specialist commercial insurers or Lloyd's of London syndicates.
Will Flood Re always exist?
Flood Re is designed as a transitional mechanism running to 2039. The intention is that by 2039 the insurance market will have developed risk-reflective pricing that makes flood cover widely available without the need for a reinsurance pool. Policyholders in high-risk areas should be aware that pricing will likely change as the scheme evolves and ultimately winds down.
