A Guide to the Flood Re Scheme
is the first scheme of its kind in the world, it's a
not-for-profit scheme backed by the government and owned and managed by the
Flood Re makes no difference to how you purchase your home insurance
you'll continue to buy and deal with your own insurer as you do now.
The Flood Re scheme
operates in the background to provide you with peace of
mind; the simplest way to explain how Flood Re works is that it is an
insurance policy for your insurer (it's what we in the insurance industry
call a re-insurance scheme). So, if your house floods and you make a flood
insurance claim, your insurer will be able to claim back the money that
they pay you from Flood Re. Even if you make a claim, you'll never need to
contact Flood Re.
Who's eligible for the Flood Re scheme?
The Flood Re scheme isn't available to all homeowners, to be eligible your
property must be:
The property is currently covered by an insurance contract which is
held in the name of, (or on trust for) one or more individuals or by
the personal representative of an individual.
The policy holder, or their immediate family, must live in the property
for some or all of the time (this can be with other people) or the
property must be unoccupied.
The property must have a domestic Council Tax Band A to H (or
The property must be used for private, residential purposes.
The property must be a single residential unit or a building comprising
of two or three residential units.
The property must be insured on an individual basis or have an
individual premium, it cannot be part of a policy which includes a
number of other properties as well.
The property must be built before 1st January 2009 (if a home is built
before 1stJanuary 2009 but then demolished and rebuilt, the new home
will however still be eligible).
The property must be located within the UK specifically being: England,
Wales, Scotland and Northern Ireland (excluding the Isle of Man and the
There are some exceptions to the types of property that can be included
which we have listed below (A-I). These properties must also meet all of
the 8 criteria to be eligible. The property types are:
Bed and breakfasts paying Council Tax and insured under a home
Farmhouses dwellings and cottages. Where farmhouse dwellings are
included in as part of a commercial lines insurance policy, as long as
the insurer can split out the dwelling element (and that this meets the
criteria 1-8 (inclusive) above), the dwelling part of the risk can be
ceded to Flood Re.
Holiday homes/Second Homes.
Properties occupied by home workers.
Individual leaseholders protecting their own property/flat.
Leasehold blocks if they contain 3 units or fewer and the freeholder(s)
lives in one of the units to be insured.
Single unit leasehold properties where the leaseholder insures the
structure of the property.
Residential "buy to let" properties.
Static Caravans/homes if in personal ownership
If your home is included in A-I above, then you are only eligible to for
buildings only cover or a combined insurance policy (covering both the
building and its contents) you will not be able to buy cover for just the
contents of the building.
Flood Re will also cover a tenant's or individual person's contents in a
rented or leasehold property even if the buildings risk would not be
eligible (for example large blocks of flats) as long as the policy and the
property it relates to meet the acceptance criteria 1-8 listed above
Is my insurer a member of the Flood Re scheme?
Insurers don't automatically have to be a part of the Flood Re scheme,
however many of them are. There's not a publically available list of all
insurers that do subscribe to Flood Re however, a list of some of the
insurers participating in the scheme can be found on the Flood Re website.
If my insurer is a member of the Flood Re Scheme will my policy automatically be included in the scheme?
No, if an insurer is part of the Flood Re scheme it doesn't necessarily
mean that the they will include your property in the Flood Re scheme.
How will my insurer decide whether or not to include my property in the Flood Re scheme?
This will be based on their view of how likely your home is to flood. The
more likely they think your home is to flood the more likely they are to
include you in the Flood Re scheme. Insurers are likely to have different
views on this.
I've previously made a flood insurance claim – will I still be eligible for the Flood Re scheme?
Yes, you will as long as your property meets the eligibility criteria.
My insurance policy is due for renewal, will I be included in Flood Re?
This depends on whether you meet the eligibility criteria, whether your
insurer is part of the Flood Re scheme and whether or not they decide to
pass on the flood risk to Flood Re.
How much will flood insurance cover cost under Flood Re?
The Flood Re scheme is paid for in two ways:
A tax/levy paid by all home insurers in the UK.
All insurers pay an amount of money in to the Flood Re fund based on what
proportion of homes in the UK they insurer – the larger their share the
more levy they pay. Insurers pass the cost of this levy back on to all
policy holders whether or not they are high flood risk. Policyholders are
generally unaware that they are contributing towards the levy as it's
automatically included in the overall cost of your household insurance
policy. The initial levy has been set at £180M.
An amount paid by all policyholders who's properties are included in the Flood Re scheme.
If your home is included in the Flood Re scheme you will pay a fixed
premium for the flood part of your insurance policy. What you pay will vary
by the type of cover you buy and by the Council Tax band that you live in.
The current charges for policyholders are:
How can I find out what council tax band my property is in?
You can find out your council tax band at: http://cti.voa.gov.uk/cti/InitS.asp?lcn=0
How much will my insurance cover cost if my insurer does not include me in the Flood Re Scheme?
If your insurer decides not to include you in the Flood Re scheme they will
set their own charge for offering you flood cover and include this within
the overall cost for all other cover such as theft, fire etc. If your
insurer doesn't include your property in the Flood Re scheme. It is
unlikely that if you are eligible for Flood Re and your insurer chooses not
to include you in it that your flood insurance premium will cost you less
that if it your home was included in the Flood Re scheme.
How much will cover for risk other than flood e.g. fire or theft cost?
The premium charged by your insurer for all other insurance cover other
than flood will be set by your insurer in exactly the same way as it is
now, the cost of this cover will be added to the cost of your Flood Re
How much money can the Flood Re scheme save me?
Research published by Flood Re has highlighted that on average households
are able to save around 50% in comparison to their premiums prior to the
schemes introduction. Some properties in very high flood risk areas
or that have had several flood claims may have been virtually uninsurable
before the launch of Flood Re, in fact many people chose to 'self-insure'
i.e. pay for the cost of damage caused by a flood themselves.
Will the costs under the Flood Re scheme change?
Yes, they will but not in the short term. Flood Re has set the current
levies for a 5-year period (until 2020) after which time the levies will be
reviewed and adjusted according to the cost of running and maintaining the
scheme. It's important to remember that Flood Re is a non-profit making
scheme and the levies will always be set to minimise the cost to
What excess will I have to pay if I make a flood insurance claim?
If your home is covered under the Flood Re scheme and you make a flood
claim, you will also benefit from a low flood excess. The current Flood Re
excess is £250 which is significantly lower than many of the policy
excesses faced by household prior to the schemes launch.
If your insurer doesn't cede you in the Flood Re scheme your flood
insurance excess will vary, ask your insurer or broker to confirm this
amount to you, it should also be stated in your policy documentation.
What excess will I have to pay for non-flood claims?
The excess you pay for any other type of insurance claim you make under
your policy will be the standard amount that your insurer would typically
How do I make a flood insurance claim under Flood Re?
If you need to make a flood insurance claim you'll do this in exactly the
same way as you would do for any other type of claim. Flood Re won't
actually get involved in the handling or payment of your claim directly,
this will all be done by your insurer. Once your insurer has settled your
claim they will look to re-coup these costs from Flood Re.
If you've got a question that we've not answered contact us at on email@example.com
we'll be happy to help answer it for you!