On Monday 4th April 2016 we saw the launch of the much awaited government backed scheme to provide affordable flood insurance for homeowners in areas at high risk from flooding. This will be very much welcomed by many families living in homes living in such areas.
Flood Re has produced a short video explaining how the scheme works and this can be viewed on youtube. It is worth taking two minutes to view this.
If you watch the video, you will notice that flats are referred to along with the two ways that flat owners in high risk flood areas can currently, potentially, benefit from the Flood Re scheme. They will be able to obtain contents insurance with the flood risk ceded to Flood Re which will give them more choice, cheaper premiums and lower excesses. Also, blocks of three or less flats can also be eligible, providing that the freeholder lives in one of the flats. That said, only a limited number of insurers went live with the launch of Flood Re and these were mainly the big name direct insurers. It will take some time for the Flood Re scheme to roll out further and deliver its full benefit.
Whilst many homeowners living in their own residential property will be able to benefit immediately from the Flood Re scheme, it should be noted that:
Whilst many argue that Flood Re does not go far enough, specifically in respect of blocks of flats, it does provide a much needed solution to provide affordable insurance for many at risk households.
1st Sure Ltd