Flood RE

06 July 2018

Flood RE is a joint industry/Government sponsored scheme to enable flood cover to be affordable for those households at highest risk of flooding.

What do homeowners face if flooded?

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.
 
1https://www.gov.uk/government/news/climate-change-means-more-frequent-flooding-warns-environment-agency 
2ABI Responding to Major Floods booklet 
3ABI figures 11 January 2016

FAQs

Recent winters have shown that flood continues to be an issue for the UK. Flood Re has been set up to ensure that insurance against floods continues to be available and affordable.
 
We have worked with many customers over the years both to support them and restore their homes after the devastating effects of being flooded.  We are supporting the Flood Re scheme to represent the homeowners we insure who are at risk of flooding. 
All insurers pay a ‘levy’ into a central fund held by Flood Re.
 
In addition, insurers can choose to place (or cede) the flood risk part of any home insurance policy with Flood Re. For these policies the premium for the flood element will be based on the property’s Council Tax band and the flood excess will be £250.
 
The levies and the flood premiums collected by Flood Re will then be used to pay for flood claims on policies sent to them by the insurers.
This makes no difference to the way you buy your home insurance and any claims will continue to be handled by us as before.
 
If your home is to be included in the Flood Re scheme, we will contact you ahead of your renewal date with details of your amended premium including the excess of £250 for flood.
Your premium could be affected if your property is identified by us as being at risk of flooding.
We have invested in flood mapping software tools that enable us to look at properties on an individual basis and provide bespoke underwriting.
No, insurers do not all use the same data sources. The information each insurer uses is commercially sensitive and you may find that insurers will differ in their approach.
If you have any reason to complain about the advice or service you’ve received, please contact us as soon as possible. You can complain in writing or verbally at any time to:
 
Ecclesiastical Insurance Office plc
Beaufort House, Brunswick Road 
Gloucester  
GL1 1JZ 
Tel: 0345 777 3322 
Fax: 0345 604 4486 
 
If you are not satisfied with the response please contact the Group Compliance Officer using the contact details above.
 
If you are not satisfied with our response, or we have not completed our investigation after eight weeks, we’ll inform you of your right to take the complaint to:
 
Financial Ombudsman Service
Exchange Tower 
London 
E14 9SR 
Tel: 0800 0234 567 
For more information about how Flood Re works and the benefits visit www.floodre.co.uk.
 
You will also be able to find information about flood prevention and protection on this site.
1Environment Agency’s recent ‘flood aware’ campaign
2The National Flood Forum
3ABI Responding to Major Floods booklet
4ABI figures 11 January 2016