Homeowners in high flood-risk areas get insurance boost
Homeowners living in high flood-risk areas of the UK should now be able to save hundreds of pounds on their insurance premiums, according to an item on BBC News online.
Up to now, thousands of householders have been paying large additional premiums to make sure their homes and possessions are protected and so the new scheme, called Flood Re, has been designed to cut bills for those whose homes are in danger of flooding.
Insurance companies should now be able to lower premiums, as they can pass on the flood risk element of policies to the reinsurer Flood Re.
Householders who are eligible will also see their policy excesses – the amount they have to pay towards a claim – capped at £250. Previously, some people had to pay several thousand pounds towards repairs.
However, houses built since 2009 will not be covered by the scheme. This was done to discourage developers from building on land at risk of flooding. Businesses are also excluded, as are landlords who take out insurance policies on homes they do not occupy themselves.
Biggest flood risk areas in the UK
|Region||Homes at Risk||% of UK Total|
|Yorkshire & Humber||39,239||11%|
Shira Kimmerling, whose home in Hebden Bridge experienced flood damage on Boxing Day 2015, was previously unable to afford insurance. But she told the BBC that, under the Flood Re scheme, she would now be able to pay for cover. “I think it’s wonderful news,” she told the Today programme on Radio 4.
Those who have already taken out household policies are being advised by the Association of British Insurers (ABI) to talk to their providers.
What to do if you experience flood damage
They will be able to return the property to its pre-incident condition as quickly as possible, minimising secondary damage, efficiently and effectively, with the minimum of disruption.