Although an agreement was made between the Government and the ABI in 2000 to make flood insurance widely available across the UK, it did not take into account the affordability issues that recent large scale flooding has highlighted for those in high-risk areas.
That is why the Government has launched the Flood Re scheme, created to offer affordable flood insurance to more than 350,000 high-risk homes. Partly funded by a recent increase in insurance premium tax, the scheme went live as of 4th April 2016.
Scheduled to be in place for a full 25 years, a big part of the scheme will be to help people improve their understanding of their own flood risk level and whether they can help reduce the risk by taking action themselves.
So what will Flood Re do?
The government has confirmed that the scheme’s main goals are:
- Ensure affordable flood cover is available to households at the highest risk of flooding
- Increase availability and choice, including insurers and products, for consumers
- Level the playing field for new entrants and existing insurers in the UK market
- Increase the flood preparedness of authorities, insurers and communities
After some small businesses suffered affordability issues following the latest winter floods, the government is now also looking at a similar scheme to be available for small to medium sized enterprises as well as homeowners.
If you want to find out if your home or business can be supported by making insurance more affordable using the Flood Re scheme, call our adviser today.
If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth