Flood RE

Episodes of severe flooding have increased over the past 10 years and the government has warned that intense bouts of flooding will continue to become more frequent¹. Flooding can be devastating to any home. 

Below are just two examples of the effects of flooding.

• Disruption
  If your home is badly damaged it may take a year or more for it to be restored and become habitable again; mainly due to the time it takes for the property to be dried out after being flooded².
• Expense
  The average expected payout for each flood claim is now said to be £50,000 compared with £31,000 from the winter storms of 2013/14³.

As a result of the increased risk of flood, a not for profit initiative has been developed by the insurance industry with the Government called Flood Re. Its purpose is to ensure UK homes at the highest risk of flooding can get affordable flood cover.

Having property insurance with flood cover can be crucial in getting a mortgage, so if flood insurance became harder to get and more expensive, this could have serious repercussions for the property market as a whole.

For any flood claims made on the policy while on FloodRe, the only excess that you will pay will be £250, this is not on top of the standard policy excess.

Sadly, the likelihood of moving into temporary accommodation is ever likely when you suffer a flood. Fortunately, if your home cannot be lived in because of damage caused, we will pay:

• The reasonable and necessary costs of Your temporary accommodation
• Any rent you are still legally required to pay; and
• Any rent you will no longer be paid,

Until your home can be lived in again.

The most we will pay for each claim is 20% of the sum insured for buildings.

¹ www.gov.uk/government/news/climate-change-means-more-frequent-flooding-warns-environment-agency

² ABI Responding to Major Floods booklet

³ ABI figures 11 January 2016