We welcome the recent launch of the Flood Re insurance scheme, which should ensure every homeowner can get affordable flood insurance for their property, but only if it leads to wholesale changes to the way the insurance industry responds to flood events.
Insurers are being asked to pay into a central fund that will be used to cover the cost of claims made by homeowners affected by flooding. This should mean an end to the sky-high insurance premiums and policy excesses that many of us have had to endure over the years, and will allow people to insure their homes against flooding when previously it was unaffordable. The flip side is that it is likely insurers will pass the cost of the creating the fund onto all their policy holders which will result in an average increase in annual premiums of about £10.50 per household. It is also only available to owner-occupied properties, not those in rental accommodation.
To find out more and to see whether your insurance company have signed up to the scheme please visit http://www.floodre.co.uk.
Although a positve first step, we at OFA would like to see insurers work to reduce the total amount paid out due to flooding by:
- Contributing to local and national schemes that reduce the impact of flooding
- Advising and incentivising homeowners to protect their properties appropriately
- Working with local agencies to ensure adequate response is provided during and immediately after a flood event.