Why is Flood Re necessary?
The risk of flood is rising in the UK. If you’ve ever lived in a property that’s flooded or been at risk of flooding, you’ll know how stressful it can be. The last thing you want to worry about is if you can get home insurance.
Flood Re which went live on the 4th of April 2016, allows us, the insurer, to pass the flood risk part of your home insurance onto Flood Re. It means home insurance will be more widely available for the households at highest risk of flooding. It’s estimated that around 350,000 high flood risk households would not be able to access affordable insurance without a scheme like Flood Re.
How is Flood Re funded?
Flood Re is funded through an industry-wide levy which will generate £180m every year to cover the cost of flood claims. Additionally, insurers will pay Flood Re a premium for transferring each high risk property to the pool.
How much will Aviva be contributing to Flood Re?
Each insurance company is contributing an amount in proportion to their market share. Our share is based on industry wide Gross written premium.
Will the cost of home insurance fall as a result of Flood Re?
Those people who pay higher premiums as a result of their home having flooded previously may see a change in their premium and may pay less This is due to a combination of:
1/ Insurers being able to pass the flood risk to Flood Re
2/ Customers now being able to shop around for their insurance in a more competitive market which may not have been accessible previously.
3/ Some customers in high risk properties may see a reduction in their excess.