People living in areas which have flooded in recent years will be very aware of the impact on insurance premiums and excesses. Since the end of the of voluntary agreements between the Government and members of the Association of British Insurers (ABI), insurers are free to decide if they are prepared to provide any cover for properties in the worst affected areas.
With effect from 1 April 2016 many insurers have signed up to Flood Re, a scheme to provide affordable cover against Flood damage for owners or occupiers of property in these areas.
The scheme allows for a set premium to be charged depending on the Council Tax band of the property in question, and whether Buildings, Contents or both are covered under the policy.
The flood premium is paid to your insurer in the usual manner. Your insurers then pay across this premium to Flood Re to build up their reserves. Flood claims are handled in the same way as any other claim under the policy. The cost is then ceded to Flood Re, and your insurers are reimbursed the cost of your claim.
You benefit from affordable cover with an acceptable excess, usually £250.