03334142749

Flood Re – Latest News And Developments

An agreement was set out between government and the Association of British Insurers called the ‘Statement of Principles’ to guarantee all properties were offered insurance against flooding, even those deemed to be at high risk. This expired in 2013, and ever since, negotiations have been underway to come to a new permanent solution.

There has been a temporary ‘Memorandum of Understanding’ in place in the interim, but this has to be replaced by a definitive solution that will be titled ‘Flood Re’.

Flood Re is intended to make affordable insurance available to owners of property identified as flood-prone by the Environment Agency. It involves an industry-backed levy to support insurers in covering those most at risk from flooding. All UK insurers will pay into this pool to create a fund which will then be used to pay flood-related claims in high-risk areas.

Unless a new agreement is reached, insurers will no longer guarantee to offer flood cover. This could mean that upward of 200,000 properties will be uninsurable for flood.

So what next for Flood Re? And how will it affect you?

If you would like to keep abreast of Flood Re news and developments, and what they really mean to home and business owners, this page will be regularly updated with blogs about progress…

Agreement reached on flood insurance

We’re delighted to hear that – at last – a provisional deal has been reached over affordable flood insurance. The new Flood Re agreement will cap flood insurance premiums and link them to council tax bands, so that people will know the maximum they have to pay.

We’ve written about the previous agreement, called the Statement of Principles, in previous blogs, and an extension to this was due to run out at the end of July. Under this previous scheme, insurers provided cover for properties in high-risk flood areas in return for extra state investment in flood defences. If a new agreement had not been reached, it was estimated that around 200,000 householders would face difficulties in covering their properties, which would also have affected mortgage offers and property values.

The last-minute announcement of Flood Re involves an industry-backed levy to support insurers in covering those at most risk of flooding. All UK household insurers will pay into this pool to create a fund which will then be used to pay flood-related claims in high-risk areas.

It’s not completely resolved though: this is only what is called a ‘Memorandum of Understanding’. The proposal will only be given legal backing when the new Water Bill has passed through Parliament, and this isn’t likely to happen until 2015.

But it’s really good news.

Flood insurance: agreement needed

When flooding strikes, we’re on the scene as soon as we can to help victims with their insurance claims. And this is happening with alarming frequency: we seem to be facing a never-ending series of floods across the country. This makes it even more important that the ongoing difficulties between the government and insurers are sorted out as soon as possible.

The existing agreement which was reached in 2008 runs out this year. This Statement of Principles meant that insurers provided flood cover for high-risk properties in return for extra state investment in flood defences.

Unless a new agreement is reached, insurers will no longer guarantee offering flood cover. This could mean that thousands of properties will be uninsurable for flood, which in turn will have a huge impact on mortgage offers and consequently on property values.

Recent reports claim that talks are at ‘crisis point’. This could leave 200,000 homes without cover and many more facing higher premiums. Something needs to happen quickly.

Find out where you stand with your claim

I am a

(choose an option)

looking to claim for

located in

(choose an option)

Your claim is in good hands
We're fully regulated by the FCA and have been in business since 1999