It’s hard to believe that Flood Re has been in operation for over a year, and it has just issued its first Annual Report. This government-backed scheme, which we’ve written about many times, was launched in 2016 after years of wrangling and is designed to provide affordable flood insurance for properties in high-risk areas.
According to the Annual Report, just over 1.25 million policies have been backed by Flood Re in this first year. It’s really good to hear that four out of five householders with previous flood claims have seen a reduction of over 50 per cent in the price of available quotes for their flood insurance.
Apparently it has also led to far more choice for those in high-risk areas. Before the scheme was launched, only nine per cent of householders who had previously made flood claims could get quotes from two or more insurers, with none able to get quotes from five or more. Now, 95 per cent have received two or more quotes, and 84 per cent five or more. So it seems the scheme is working.
However, there has been some criticism in the press. Over the last year, we haven’t had flooding on the scale seen in the years leading up to the scheme’s launch and only £100,000 in claims associated with Flood Re has been paid out. However the company administering the scheme has been paid £500,000. Seems like they’ve got a good deal.
The biggest test of the scheme will come if and when the next major flooding occurs. Fingers crossed that this doesn’t happen for a very long time. But it’s fantastic that people in high-risk areas can now sleep more easily as they know they have affordable flood insurance in place.