A new Government initiative to help UK homeowners and tenants secure affordable home insurance in flood risk areas of the UK, Flood Re has helped thousands of people save money.
Define Flood Re
If you think your home is at risk of flooding, by using a Flood Re home insurance provider such as Lighthouse Home Insurance, you can save yourself a small fortune. As the new Government scheme states online "Flood Re works in the background to make home insurance more affordable for homeowners in areas at risk of flooding."
In recent years, the UK has suffered from the effects of heavy downpour and flash flooding. With thousands of UK homes flooding, the Government launched a new not-for-profit scheme designed to help homeowners and tenants get affordable flood risk home insurance. The scheme will be in place up until 2039, according to their website.
Flood Re’s first annual report and financial statements can be downloaded here.
How to Get Flood Re Home Insurance
If you want to benefit from the new Government scheme- Flood Re, you need to obtain home insurance with an official Flood Re provider.
Lighthouse Home Insurance is an official Flood Re provider. Our policies are all underwritten by Haven Insurance, who were one of the very first insurance providers to back the new scheme and become an official Flood Re Home Insurance provider.
How Does Flood Re Work?
Flood Re works behind the scenes to help insurance companies offer more affordable flood risk home insurance. By working with insurance companies, Flood Re never need to be in direct contact with a policyholder, yet the policyholder will receive all of the benefits that Flood Re offers.
- Flood Re collects an annual tax from each home insurance company in the UK. This money then helps to fund the scheme on an annual basis.
- A Flood Re insurance provider will offer customers in the UK a more affordable flood home insurance policy. The risk of flood on each policy is passed onto Flood Re.
- Flood Re then takes full responsibility of the flood risk part of your policy so if you ever need to make a claim on your policy, Flood Re will reimburse the insurance company from the Flood Re pot. The way that you make a claim will be exactly the same as any other claim against your home insurance policy.
Since a Flood Re insurance company don't have to take on the financial responsibility of your risk of flood when it comes to offering you cover, they will be able to offer you a highly competitive flood risk home insurance policy. According to Flood Re, approximately 350,000 households will now have access to more affordable home insurance despite their risk of flood.
