Re-insurance cover for properties at risk of flood.
Floodre is a joint initiative between the Government and Insurers to provide ‘flood cover insurance’ as an additional element to a home insurance policy (Park Homes included), that would normally not offer flood cover to a prospective customer. It is designed to cover properties built before 2009 (qualifying criteria) that might not be considered insurable against flood and to/or make any higher premiums for those that are, more affordable, and to provide flood cover for properties that private insurers totally refuse to consider.
Not all insurance companies will offer Flood cover for new customers, especially to those with properties located near bodies of water. The Floodre scheme is not a mandatory one for insurance companies to adopt unfortunately, and even with the clear financial benefits to them and the peace of mind a flood cover policy offers their customers, some companies don’t participate in the scheme or only for geographically specific areas.
There remains a large number of properties throughout the UK that are considered to be too high a risk by insurance companies to be offered any Flood Cover whatsoever, leaving many with standard buildings and contents cover – with a flood exclusion. This clearly leaves them in a very vulnerable position and because they can’t find any flood cover, this exclusion can detrimentally affect the property’s re-sale value as a result too.
Who is eligible for Flood Re?
- Properties must be located within the UK mainland.
- Properties must have a Council Tax band A to H.
- Properties must be built before 1st January 2009. Note: If a property has been demolished and rebuilt before this date, then the new building is still eligible for Flood Re.
- Properties must be used for residential purposes.
- Properties must have an individual premium.
- Leasehold flats with three or less fewer units are eligible.
- The policy holder or their immediate family must live in the home for some or all of the time, or the property must be unoccupied.
- The insurance contract must be in the name of one or more individuals, not companies.
Who is not eligible for Flood Re?
- Bed and breakfast premises that are paying business rates.
- Contingent buildings policies, such as those held by banks.
- Farm outbuildings.
- Freeholders/leaseholders deriving commercial income by insuring large numbers of properties for a portfolio.
- Housing association’s residential properties.
- Multi-use properties under commercial or private ownership.
- Residential ‘buy to let’ properties that do not meet the criteria specified above.
- Static caravan site owners when they are being used for commercial gain.
- In the case of blocks of residential flats, company houses/flats, and social housing contents only can be covered.
Floodre website: https://www.floodre.co.uk/
Floodre List of Insurers: https://www.floodre.co.uk/can-flood-re-help-me/