The Flood Re scheme is a not-for-profit flood reinsurance fund, owned and managed by the insurance industry, and established to ensure that those domestic properties in the UK at the highest risk of flooding can receive affordable cover for the flood element of their household property insurance.
The Flood Re scheme will make reinsurance for flood risk available to all insurers that underwrite household insurance policies in the UK. It will address the issue of availability of insurance for those households at high flood risk, providing a fund for people who might otherwise struggle to get affordable flood insurance.
The policy holder continues to be insured by their usual insurer. The insurer places their high flood risk policies in to the pool with the premium to cover the flood risk part of the household premium capped. The flood element of the policy is then placed in Flood Re, based on the Council Tax band of the home, priced from £210 for Band A homes to £540 for Band G homes.
What has SSP done?
SSP has been working with the Association of British Insurers (ABI) and insurers to further interpret and understand the requirements. As an SSP user you will see no real change to your application. When a quote is completed for household risks a real time call will be made to the Flood Re database allowing insurers to enrich the quoted rate accordingly.
What happens next?
The current launch date for Flood Re is November 2015, however specific detail is still being finalised and ongoing reviews carried out with Polaris and the ABI. We will keep you up to date on the Flood Re plans as they occur.
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