Ground-breaking flood insurance scheme launches
A new insurance scheme for home-owners has been launched today, aiming to lower insurance premiums for properties that are at high risk of flooding.
Around 350,000 homes are expected to benefit from Flood Re, following 15,000 home-owners making insurance claims for storm and flood damage last winter.
Costs will fall on ordinary policy-holders, paying on average an extra £10.50 on their premiums; raising average bills by around 2%. And those who are eligible will see their policy excesses (the amount they must pay towards a claim) capped at £250.
17 insurance companies have initially signed up to take part in this scheme where, if necessary, they can pass on any flood risk to Flood Re. So consumers will not need to contact the new scheme directly, as it will be done by their existing insurance provider.
However the scheme has been criticised by a group of climate change experts, the Climate Change Committee (CCC), who said:
“It achieves very poor value for money because it is trying to subsidise the costs of flooding, rather than addressing the causes and trying to prevent flooding in the first place.”
The Environment Agency also estimates that approximately 5.2 million homes in England and Wales are at risk from flooding, and experts predict that climate change is going to make the problem even worse.
So who is excluded from the scheme?
- Houses build since 1st January 2009
Where can I find insurance?
Flood Re have an active list of insurers participating in the scheme here, which is constantly being updated as more insurers come on-board.
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