Is Your Home Prone To Flooding?
Flooding causes devastation and misery for an increasing number of people in Yorkshire. But at last there’s good news.
Flood Re is a new Government-backed scheme aimed at providing affordable insurance to householders in flood-prone properties. It is funded by an annual levy on insurers and it’s the first of its kind in the world.
Brendan McCafferty, chief executive of Flood Re, says: “This should make flood cover more affordable and accessible to those in high flood-risk areas over time. If you’re in a high flood-risk area, then Flood Re may also mean having a choice of insurance provider for the first time in many years."
Here's How Flood Re Works:
- Flood Re collects an annual tax from every home insurer in the UK.
- That tax contributes £180m each year to a centrally managed fund.
- Flood Re then takes responsibility for that part of your policy and if you make a valid claim on your insurance it will reimburse the insurer from the central Flood Re fund.
- With this support, insurers should be able to provide more competitive pricing on policies. Over time, we estimate that Flood Re will benefit over 350,000 households by having access to those more affordable policies.
And here’s how you can benefit:
If your home meets the following criteria, insurers participating in the Flood Re scheme should be able to offer you affordable home insurance.
- The policy will be in the name of an individual, a personal representative or trust.
- The property must be in council tax bands A-H.
- It is used for residential purposes.
- The property has an individual premium.
- It must have been built before January 1, 2009.
- The policyholder, or close family, live at the property some of the time. Or, the dwelling is unoccupied.
Many insurance brokers don’t fully appreciate the implications of Flood Re. Eastwood and Partners however are working with leading insurers who are committed to the scheme and are able to place risks immediately.