The Success of Flood Re?
Now the weather has taken a very sharp turn and is becoming colder and wetter, it’s as good a time as any to check your home insurance policies for flood cover.
In April this year a new re-insurance scheme, Flood Re, was launched. Initially 16 insurers signed up, and six months on, 41 have since joined - representing 90% of the overall home insurance market.
Flood Re is a £2.1bn scheme between the government and the insurance industry that enables those living 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 and have sometimes been unable to obtain insurance cover altogether. Since its launch 53,000 policies have been backed by Flood Re, many of which would have previously been locked out of the market. It is estimated that 350,000 homes could benefit from the scheme in the future.
In 2015, around 16,000 properties in the UK were flooded, costing around £5bn - £5.8bn. The average cost of flood damage is approximately £28,000 – almost 4 times higher than the cost of a fire. A flooded home can cause emotional turmoil, ill health and inconvenience as it can take several months to repair the damage. A flood can also cause structural damage and contamination which could reduce property values.
If you are looking to purchase a property, it is essential to assess the flood risk. This simple check can be done by purchasing a Groundsure Flood, or a Groundsure Homebuyers report which will advise you of potential flood risks within the vicinity of the property.