Re: Floods – Flood Re26th October 2013
We have reported previously on the expiry at the end of July of the agreement between the government and the insurance industry that cover would be available to property owners in high risk flood areas.
The lack of a replacement arrangement was causing the industry and property owners alike considerable concern. However, a new scheme called “Flood Re” has now been announced and is due to come into force in 2015. But the news is not all positive and there are major gaps in the cover available. For example, Flood Re will only assist residential properties, whereas properties with a business use will be outside the scheme.
Furthermore, residential properties in council tax band H will also be excluded. In both cases, the property owners will be subject to open-market premiums – or to the possibility of no cover being available at all if located in a high risk area. In any event, until the scheme comes into force in 2015, the current open-market situation will continue to apply across the board.