You are here: Home - Insurance - News -

New flood insurance scheme launches

Written by:
A new insurance scheme designed to help homeowners living in flood risk areas has launched but consumer awareness of it is low, research shows.

Flood Re – which launched on 4 April – should save thousands of people hundreds of pounds on their insurance premiums.

It will be available through the following insurers with more names due to be added to the list: Admiral, Avantia, Aviva, Bank of Scotland, Cherish, Churchill, Direct Line, First Direct, Halifax, Hiscox, L&G, HSBC Home Insurance, LV=, Lloyds Bank, More Than, Nationwide and Privilege.

However, a study of 1,000 homeowners by Admiral found only one in seven had heard of Flood Re.

Insurance companies will be able to offer lower premiums to flood prone homeowners as they’ll be able to pass on the flood risk part of the policy to Flood Re, a reinsurance company funded by the insurance industry.

Flood Re collects an annual fee from every home insurer in the UK and any flood claim costs are reimbursed to the insurer from the central Flood Re fund.

Landlords and properties built since 1 January 2009 are excluded from the scheme.

Brendan McCafferty, chief executive of Flood Re, said:

“We have been working tirelessly to ensure we’re ready so that consumers can start benefitting from greater choice and more competition in the insurance market. This should make flood cover more affordable and accessible to those in high flood risk areas over time.

“Consumers should check the Flood Re website to see which insurers are signed up, speak to their current insurer and be prepared to shop around. When buying a policy they should make sure it is the best one for them, not just the cheapest.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week