So it’s finally happened! Flood Re has gone live. It’s taken four years to get to this stage, and there have been times when it looked as if agreement would never be reached. But it’s here: affordable flood insurance is now available for the vast majority of the population.
Flood Re operates by charging a small amount extra on all our buildings insurance, which will be on average £10.50. This is then used to create a fund which will be available to insurers should flooding strike. So people in high-risk areas will no longer either have to pay huge insurance bills or be denied insurance cover altogether. And the excess on their policies will also be capped at £250.
There are still exceptions however, most notably businesses, rented properties and homes built since 2009. This has led to many objections to Flood Re, and these rumble on. Indeed, only last week we reported that there are rumours of a Flood Re 2 to cover excluded properties, in particular those in the private rental sector.
But whatever the issues around Flood Re, it is fantastic news that it’s now up and running.