Flood-risk home insurance hope

HOUSEHOLDERS in expensiveto-insure flood-prone areas could see a welcome fall in premiums this year, according to a scheme which helps to make affordable cover more widely available.

The Flood Re scheme has previously announced that it will cut the charges it imposes on insurers from 2019 – which in turn could make cover cheaper for householders.

The scheme, which launched in 2016, does not deal directly with homeowners but works with insurance providers.

When customers buy home insurance cover, insurers can choose to pass the flood risk element of the policy to Flood Re for a fixed price.

Insurers will then be reimbursed by the scheme if they need to pay out on a claim.

The scheme’s officials said in October that reinsurance premiums charged to insurers would be reduced, starting from yesterday.

However, Flood Re does not set policy prices and said that was a decision for insurers to make. It said the changes, in line with its purpose of making flood cover more affordable, could mean a potential reduction of up to £112 for a combined buildings and contents policy.

A home insurance industry levy helps to pay the costs of Flood Re.

Andy Bord, chief executive, said: “I am delighted to start the new year by making home insurance more affordable for those most at risk of flooding.

“More than 200,000 properties have benefited from Flood Re since it was launched.”