Today marks the launch of the well anticipated Flood Re – a £2.1bn flood reinsurance scheme between the government and the insurance industry that enables people that live in flood prone areas to insure their properties at an affordable price.
The traditional state of play has been that those living in high flood risk areas can pay extortionate premiums or on occasions are unable to obtain insurance cover altogether.
With the support of Flood Re, insurance companies registered with the scheme will be able to provide insurance and maintain affordable pricing on their policies. This will work by insurance companies passing on the element of flood risk of around 350,000 eligible home insurance policies to Flood Re. Insurers will be charged a premium for each policy which will be based on the property’s council tax band with prices varying from £210 for tax band A to £1,200 for tax band H. Further information on registered insurers can be found here: http://www.floodre.co.uk/homeowner/find-an-insurer/
Flood risk should be at the forefront of every property transaction and Groundsure can assist house purchasers, solicitors and others involved in the transaction find out about their flood risk. Our new look Flood and flagship Homebuyers reports identify if a property is at risk of flooding and the likely availability of standard-priced insurance and they now include the potential for the property being ceded into the new Flood Re scheme.