What is the Flood Reinsurance Scheme in the UK?

Understanding the flood reinsurance scheme in the UK is important for people who live in areas which are at a high risk of flooding. This is especially important at the moment due to the increasing incidents of storms in the UK. The flood reinsurance scheme is known as Flood Re and it may help you get the insurance cover you need at an affordable price, if you are in an area with a high-risk of flooding in the UK.

With many people in the UK recently affected by flooding, you may be concerned about your own property and how you can make sure you are covered, should the worst happen to you.

Government and the insurance industry have together worked to set up the Flood Re reinsurance company in the UK, the first scheme of its type anywhere in the world. It is a publicly accountable, not-for-profit fund, set up to make sure insurers can meet the costs of claims made due to flooding.

How Does the Flood Reinsurance Scheme Work? 

The first thing to note is that you will never have to deal with Flood Re directly yourself. You will still take out your insurance cover from an insurance broker or insurer as normal.

If the cost of the flood cover in your insurance policy goes above a certain level, the insurance company can place that part of the policy with Flood Re. Your insurer will then be able to recover the costs of a claim due to flooding from Flood Re.

The millions of pounds that have been invested in Flood Re, and which are levied from the insurance industry each year, allows you to find affordable insurance cover even if you are in a high-flood-risk area.

Where you can get cover at a market price below that possible under the Flood Re scheme, there will be no need for your insurer to use the scheme, but otherwise it allows for cover to be affordable for you and, in the event of a claim, for your insurer.

If your home is in a high-flood-risk area, it could be eligible for Flood Re. You may find it helpful to know that homes built after January 1st 2009 are not eligible (so as not to incentivise building in high-flood-risk areas). You can find detailed eligibility criteria on the Flood Re website: https://www.floodre.co.uk/find-an-insurer/eligibility-criteria/

If you take out your cover with Park Home Assist, you will be dealing with a multi-award-winning company, which is a participant in the scheme and so can offer good value flood cover as part of your policy, no matter your location.

This is a marketing article from Park Home Assist, multi-award-winning providers of residential park home insurance.  If you would like to speak to an advisor regarding insurance for your park home, please contact our friendly team in our Northampton office on 01604 946 796.

Please note that all insurance cover is subject to acceptance of terms and conditions.

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Published – 26/01/24