With warmer, wetter winters we’re more likely to hear about the risk of flooding than of snow or ice
In recent years news reports have shown the utter devastation caused by rivers breaking their banks and waterfront properties wrecked due to insufficient flood defences as the warming of the planet increases.
Unsurprisingly this has led to an increase in the number of flood claims received by insurers. This may have contributed to home insurance price rises and, for homeowners worst affected by floods, could even result in them facing the prospect of prohibitively high home insurance premiums.
According to the Environment Agency more than five million properties in England alone are at risk of flood, with more warnings in Wales, Scotland and Northern Ireland.
December 2015 was the wettest in a century - it’s estimated that around 16,000 homes were flooded in England alone.
Reports suggest that the cost of the floods in 2015 to homes could total hundreds of millions of pounds if not over a billion pounds.
What is Flood Re?
Admiral, along with the insurance industry are working with the government to form a new scheme called Flood Re.
Flood Re aims to give homeowners a wider range of home insurance options at a more affordable price. It works by charging all home insurers a fee and it is this fee along with other charges to insurers using the scheme that will pay for any associated flood claims.
Find out more about the scheme at FloodRe.co.uk to see how it could benefit home owners.
What is the eligibility criteria for Flood Re?
The Flood Re scheme applies to residential properties built before 2009. The scheme does not apply to commercial properties including:
- Bed and breakfasts
- Blocks of residential flats
- Company houses or flats
- Farm outbuildings
- Residential buy to let
- Static caravans.
To see if your property is eligible and to find out more about the full eligibility criteria, you can visit www.floodre.co.uk/eligibility
What this means for customers affected by flooding
There’ll be no change to the way you currently shop for home insurance. If you do need to make a claim, the process you go through remains exactly the same. You’ll still need to inform your insurer of any loss or damage who will then deal with your claim.
The only difference lies at the insurer’s end as it could mean the new scheme may fund some of your flood claim.
How can Admiral help?
Even with flood warnings occurring during winter, we want you to be able to have a sustainable lifestyle; so from the 4th April 2016, Admiral will use the Flood Re scheme to provide more affordable home insurance to homes at risk of flood.
If your property is classed as a high flood risk, you may be paying a lot for your home insurance, but the introduction of Flood Re should make it more affordable.
You don’t have to wait until your renewal to start saving money; you can shop around at any point.
What to do if your home floods
A flooded home is one of the most devastating things you can experience; whatever is left behind by the floodwaters is often unsalvageable.
You should contact your insurer as soon as it is safe to do so and they will be able to instruct you on the next steps to take.
- See how a four-time flood victim saved over £2,000 on her Admiral Home Insurance on the day of Flood Re's launch