Flooding is something you should think about when taking out home insurance. And we are seeing major changes to home insurance. If you live in an area at risk of flooding or are thinking about buying a property with flood history, have you heard of Flood Re? (Source: Flood Re)
It’s a government-backed scheme that helps households at higher risk of flooding access affordable insurance. It’s announced a new package of big reforms as it reaches its tenth anniversary. It’ll aim to help you become more flood-resilient and prepare for the scheme's planned end in 2039.
What is changing? One of the most immediate changes will benefit some lower-income households. From April 2027, Flood Re will reduce the premium it charges insurers for contents-only policies in Council Tax Bands A and B. Flood Re expects insurers to pass these savings on to customers. (Source: UK Parliament)
But the changes go beyond premiums. Flood Re is also developing Flood Performance Certificates, designed to work somewhat like Energy Performance Certificates. They could help homeowners understand how vulnerable their property is and make it more resilient. The aim is for improvements to a property's flood resilience to be recognised through insurance pricing. (Source: Flood Re)
Why should homeowners care?
Flood insurance can be particularly important when you're buying or remortgaging a property. If a property has a history of flooding or is considered at significant risk, finding suitable and affordable insurance can be more complicated. Flood Re has helped improve access to cover over the past decade.
Buying a home in a flood-risk area? Don't automatically assume that a flood-risk property is uninsurable – but don't ignore the issue either.
Before buying, investigate the property's flood history, understand what insurance is available, and find out whether measures could reduce the potential impact of future flooding. And if you're already a homeowner, reviewing your buildings and contents insurance regularly is worthwhile. Check your sums insured, excesses and exclusions, and make sure you understand exactly what you're covered for.
If you're buying, remortgaging or simply unsure whether your home and insurance are still right for you, we're here to help. Get in touch, and we can talk through your circumstances and point you towards the right questions to ask.
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