Today the insurance industry and Government have announced the final agreement securing the development and delivery of Flood Re - a pooled insurance system which will allow even the highest risk homes to insure against floods.
A year on from devastating floods which caused trauma to hundreds of people, the solution proposed by the UK insurance industry has now been agreed with Government and implementation can now move forward so as to provide peace of mind for hundreds of thousands of homeowners at risk of flooding.
The final points of negotiation have all been agreed including the inclusion of properties within council tax bands H and I in the scope of Flood Re.
ABI Chairman Paul Evans said:
" A year on from the floods that had such a devastating impact on home owners across the country, this is a great result that will ensure continued access to affordable insurance for all who were previously covered by our voluntary statement of principles.
Today's agreement has taken real determination from the insurance industry to develop the details a workable proposal for Government, and a number of tough decisions have been necessary on both sides to make it a reality. I would like to thank all insurance firms who have worked so hard to get our Flood Re initiative to this critical stage, and to wish Bredan McCafferty, CEO of Flood Re, and his team, every success in now driving implementation for the benefit of our customers.”
Huw Evans, Deputy Director General of the ABI said:
"This agreement demonstrates once again the determination of insurers and the Government to get Flood Re up and running so that residents at highest risk of flooding can access affordable and available insurance.
“Insurers are investing £17 million and thousands of hours of expertise to get Flood Re built and to play our part in helping manage this country's flood risk. Today's agreement marks a big step forward in this task."
Flood Re, a world first, will provide a fund that will pay out claims made by those flood risk households who without it would likely struggle to be able to get or afford flood insurance – we estimate between 300,000 -500,000 homes could benefit from it. Flood Re is a world first, which insurers are working flat out to make happen. Flood Re will allow insurers to pass the flood risk element of any home insurance policy to it at a set premium based on the property’s council tax band. Insurers will continue to set premiums for both buildings and contents insurance, taking into account other risks such as fire, theft, subsidence, the overall claims experience on home insurance policies, and other factors in the competitive UK property insurance market.
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