Scheme may help cut in­sur­ance costs for homes in flood-hit ar­eas

Rochdale Observer - - TIME-TRIP -

HOUSE­HOLDS in flood-prone ar­eas could see their in­sur­ance costs re­duced from next year, ac­cord­ing to a scheme which helps to make af­ford­able cover more widely avail­able.

The Flood Re scheme, which was launched in 2016, said it will cut the charges it makes to in­sur­ers - which in turn could make cover cheaper for house­holds.

The scheme does not deal di­rectly with house­holds but sits in the back­ground for in­sur­ers to make use of.

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

The scheme will then re­im­burse the in­surer if they need to pay out on a claim.

The scheme has an­nounced it will re­duce the rein­sur­ance pre­mi­ums it charges to in­sur­ers from Jan­uary 1 2019. It said: “The de­ci­sion is an­tic­i­pated to re­duce the costs of flood in­sur­ance cover for peo­ple most at-risk of flood­ing in the UK.”

How­ever, Flood Re does not set the prices paid by house­holds, and it said that is a de­ci­sion for in­sur­ers to make.

●●The scheme could help make in­sur­ance cover more af­ford­able in flood-hit ar­eas

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