Flood Risk Insurance UK: Flood Re Scheme, Eligibility and How to Get Cover

Why flooding is hard to insure

Flooding sits at the difficult end of insurable risk. A single flood event can damage many homes in the same area at once, the damage is often severe, and properties that have flooded once frequently flood again. For insurers this combination of high cost and repeat exposure makes flood cover expensive to price for homes in high-risk locations.

Before Flood Re existed, some homeowners in flood-prone areas struggled to find affordable cover, or found that flood was excluded or carried very high excesses. The agreement that preceded the scheme had kept a degree of availability, but as it wound down a more durable solution was needed for the households most exposed.

Flood Re was created to bridge that gap. It does not make flooding less likely, but it changes the economics of insuring it, allowing insurers to offer cover at a price that more households can afford while the underlying risk is managed and reduced over time.

How Flood Re works behind the scenes

Flood Re is a reinsurance scheme, which means it insures the insurers rather than dealing with the public directly. When a household buys an eligible home insurance policy, the insurer can choose to pass the flood risk portion of that policy into Flood Re for a fixed reinsurance premium. If a flood claim then arises, Flood Re pays the insurer back for the flood element.

The effect for the homeowner is that they buy an ordinary buildings and contents policy from an insurer in the usual way. The scheme operates invisibly in the background: there is no separate Flood Re product to purchase and no direct application to make. What changes is that insurers are more willing and able to offer competitive flood cover on eligible homes.

The scheme is funded by a levy on UK home insurers, which spreads the cost of the highest-risk properties across the wider market. This pooling is what keeps flood premiums affordable for the homes most at risk, and it is underpinned by the statutory framework set out in the Water Act 2014.

Who qualifies and who does not

Eligibility for Flood Re is defined by property type and characteristics rather than by the homeowner's circumstances. The core conditions are that the property is a UK residential home, is in council tax bands A to H (or the equivalent in Scotland, Wales and Northern Ireland), and was built before 1 January 2009.

The main exclusions include:

• Homes built on or after 1 January 2009, set to discourage new development in flood-risk areas.
• Most commercial property and business premises, which fall outside the residential scope of the scheme.
• Blocks of flats above defined thresholds and some freehold and leasehold arrangements, where specific rules apply.
• Properties that are not the type of household risk the scheme was designed for, such as certain mixed-use buildings.

Because the rules around leasehold flats, freehold buildings of multiple units and the 2009 build date can be detailed, a homeowner who is unsure should check the position with their insurer, who can confirm whether the property can be ceded to Flood Re.

Getting cover on a flood-risk home

Securing flood cover starts with understanding the property's flood risk. The Environment Agency and the devolved equivalents publish flood risk information by location, which helps a homeowner see whether their address is in a flood-risk area and what type of flooding is most likely, whether from rivers, the sea or surface water.

When approaching insurers, accuracy matters. Under the Consumer Insurance (Disclosure and Representations) Act 2012, the homeowner must take reasonable care to answer the insurer's questions honestly, including any history of flooding at the property. Disclosing past flooding may feel counterproductive, but a non-disclosure can lead to a claim being reduced or refused later, which is a far worse outcome than a higher premium.

Households can also take practical steps that may improve their position. Property-level flood resilience measures, such as flood doors, non-return valves and raised electrical sockets, can reduce damage and may be reflected in how an insurer views the risk. Some insurers and the scheme also support a build back better approach, where flood resilience improvements are funded as part of repairing a flood-damaged home.

The future of flood cover and what to plan for

Flood Re is not intended to be permanent. It is designed as a transitional measure scheduled to run until 2039, by which point the aim is for the home insurance market to move towards risk-reflective pricing, supported by improved flood defences and wider take-up of property-level resilience.

This timeline matters for anyone buying or living in a flood-risk home. The affordability that Flood Re provides today is a managed transition rather than a guarantee for the indefinite future, so investing in flood resilience and supporting community flood defences has long-term value beyond the immediate premium.

For now, the practical message is that flood cover is generally obtainable for eligible homes thanks to the scheme. A homeowner should buy a normal home policy from an insurer, disclose flood history accurately, check the property's flood risk, and consider resilience measures that reduce both the chance and the cost of future flooding.

Frequently asked questions

Do I apply to Flood Re myself?

No. Homeowners do not deal with Flood Re directly. You buy a normal home insurance policy and the insurer decides whether to pass the flood element of an eligible policy into the scheme behind the scenes.

Why are homes built after 2009 excluded?

The 1 January 2009 cut-off was set so the scheme does not subsidise insurance for new homes built in known flood-risk areas, encouraging development decisions that take flood risk into account.

Does Flood Re cover businesses?

No. The scheme is for residential household buildings and contents insurance. Most commercial property and business premises fall outside it and must seek flood cover through the commercial market.

Should I tell the insurer my home has flooded before?

Yes. Under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care to answer questions honestly. Non-disclosure of past flooding can lead to a claim being reduced or refused.

How long will Flood Re be available?

Flood Re is scheduled to operate until 2039, after which the market is intended to move to risk-reflective pricing supported by improved flood defences and resilience measures.