How to Insure a House in a Flood Area
Securing affordable home insurance can be challenging if you live in a high flood risk area. Many insurers either increase premiums or decline cover altogether for properties more likely to experience flooding.
What is Flood Re?
Flood Re is a partnership between UK insurance companies and the Government, designed to make flood cover more widely available and affordable for homeowners. The scheme allows insurers to transfer the flood risk portion of their policies to Flood Re, a not-for-profit fund managed by the insurance industry. This process, known as reinsurance, helps insurers manage potential large-scale losses from flooding.
How Does Flood Re Work?
If your insurer participates in Flood Re (Pedal Cover does), they may use the scheme to cover the flood risk element of your home insurance policy. This arrangement is handled entirely behind the scenes, so your experience as a policyholder remains unchanged.
Claiming for Flooding
In the event of a flood, you make a claim with your Pedal Cover as usual. Flood Re does not handle claims directly. Instead, your insurer manages the claim and can recover eligible costs from Flood Re after settling with you.
Who Pays for Flood Re?
All UK insurers offering home insurance contribute to Flood Re annually. Additionally, when an insurer cedes a policy to Flood Re, they pay a fixed premium based on the property’s council tax band. There is a standard excess of £250 for every policy under the scheme. Combined, these contributions raise around £135 million each year to support flood insurance for at-risk homes.
For more details, see how Flood Re works and who pays for it.
Does Your Home Qualify for Flood Re?
Flood Re is available only for properties built before 1 January 2009. This restriction aims to discourage new developments in flood-prone areas. The scheme excludes holiday lets, buy-to-let properties, commercial and leasehold properties, and homes in the Channel Islands or the Isle of Man.
Flood Re is intended as a temporary solution and is set to end in 2039, by which time insurers are expected to manage flood risks independently. Learn more about the scheme’s future on the Flood Re website.
Before buying or renting a property, it’s important to check its flood risk. Use the UK Government’s flood risk checker for up-to-date information.
If you’re considering a new build, ask the developer about flood mitigation measures and consider a full buildings survey that includes flood risk assessment.
More Information on Flood Re
You do not need to take any special action to benefit from Flood Re if your insurer participates. For further details and advice on managing flood risks, visit the Flood Re website.
Pedal Cover Home Insurance for Cyclists
If you’re a cyclist seeking comprehensive protection for your home and cycling equipment, get a home insurance quote from Pedal Cover.
Home insurance for cyclists from Pedal Cover can help protect your property and cycling gear against flood, theft, and accidental damage.
Always review your policy details to understand what’s included and excluded.
FAQs: Flood Re and Home Insurance in Flood Risk Areas
What is Flood Re?
Flood Re is a Government-backed scheme that helps insurers offer affordable flood cover to homeowners in high-risk areas by sharing the cost and risk of flood claims.
How do I know if my home qualifies for Flood Re?
Your home must have been built before 1 January 2009 and be used as your main residence. Certain property types, such as buy-to-lets and commercial properties, are excluded.
Does Flood Re affect how I make a claim?
No, you claim through your insurer as usual. Flood Re operates in the background and does not interact directly with policyholders.
Will my premiums be lower with Flood Re?
Flood Re aims to make flood insurance more affordable, but your premium will still depend on your insurer’s pricing and your property’s risk profile.
How long will Flood Re be available?
The scheme is set to run until 2039, after which insurers are expected to manage flood risks without its support.
