This week sees the first anniversary of Flood Re, the first reinsurance programme of its kind in the world, designed to provide affordable home insurance premiums and excesses to thousands of households who live in a high flood risk areas.
Since its introduction on the 4th April 2016, Flood Re has helped over 100,000 householders in high flood risk areas obtain affordable insurance. Whilst this is an amazing result in just 12 months, the scheme is set to eventually benefit approximately 350,000 households.
Contrary to common belief, Flood Re isn’t actually an insurer, it’s a scheme that works in the background to support insurers. It’s probably easiest to think of it as insurance for insurers. So, for example if you were to make a flood insurance claim under your household insurance policy, your insurer will then claim the money it pays you back from someone else, specifically being Flood Re (that is assuming your insurer supports the Flood Re scheme and that your house meets certain criteria).
Flood Re makes no difference to how home insurance is bought, you can still do this through an insurance broker, directly from an insurer or via a price comparison site. If you’ve bought a policy that is supported by the Flood Re scheme you’ll continue to deal with your insurer as usual. If you need to make a flood insurance claim your insurer will manage your claim for you as normal, likewise it’s no different if you make a claim for a damaged carpet or lose roof tiles.
Here at Flood Assist we’ve been watching Flood Re evolve over the past 12 months and appreciate first-hand the many challenges that the Flood Re team have faced to get the scheme live. There is still some way to go before the scheme is running at capacity, and many insurance brokers are frustratingly still unable to access affordable flood insurance cover from Flood Re on behalf of their customers. Insurers need to really get behind Flood Re and help get the scheme out in to the wider insurance market. Ironically, a good dose of rain and bad weather would work wonders in achieving this!
So Happy 1st Birthday Flood Re, we’re looking forwards to working with you and supporting you for many years to come.