Flood Re, the new flood insurance scheme for homeowners in the UK, launches today, Monday 04 April, 2016.
The Association of British Insurers (ABI) describe Flood Re as a “world-first insurance scheme” designed to help people who live in flood risk areas get affordable home insurance.
Explaining how the new scheme works, ABI said that Flood Re is not a home insurer itself but will work behind the scenes with existing insurance companies so that people who own and live in homes that are most likely to flood can shop around more easily to find policies with affordable premiums and excesses.
Currently, the list of insurers using Flood Re includes Admiral, Avantia, Aviva, Bank of Scotland, Cherish, Churchill, Direct Line, First Direct, Halifax, Hiscox, HSBC, Legal and General, LVE, Lloyds Bank, More Than, Nationwide and Privilege. More insurers are likely to be added in coming months.
James Dalton, Director of General Insurance Policy at the ABI, said:
“It’s great to see so many insurers ready to make use of Flood Re from launch. Monday is just the start of a process and we know more providers will join them over time, bringing even more choice for people with homes at risk of flooding.
“Insurance is an essential safeguard for your home and belongings. People in flood risk areas not being able to access affordable cover was a major concern, and why the insurance industry went to great lengths to design and create this world-first solution along with Government.”
Flood Re for Homeowners
Despite the great fanfare about the launch of Flood Re, ABI assure homeowners there’s no need to feel pressured to do anything in a hurry. They say:
“The benefits of Flood Re will develop over time so if your policy isn’t due for renewal yet, you may find an even greater choice of cover when you are ready to renew in a few months’ time.”
To see of you can benefit from Flood Re, ABI say you should check if you live in a flood risk area, then speak to your current insurer to make sure you understand what your current insurance policy covers and how much you’re paying for it. It’s possible that your insurer will have more options now that Flood Re has launched. ABI also suggest that people shop around to see what else is available. They say:
”It’s a good idea to shop around for insurance products to make sure you have the policy that best suits your needs – remember not to focus purely on price but look at the cover offered as well. Over time, Flood Re should mean that people with properties at risk of flooding have a greater choice of cover as a market develops fully.
“Comparison websites generally suit people with standard needs so finding cover for a property with a flood risk may be best done by dealing directly with an insurer.”
However, ABI say that all owners of homes in flood risk areas should consider protecting their homes in other ways, rather than relying on insurance alone.
“If your home is in a high flood risk area there may be steps you can take to reduce the risk of water getting into your home, or to make it easier to repair if it does flood”.