Flood Insurance: what you need to know

Article by Emma Lofthouse 06 November 2017

What is Flood Re?

Flood Re is a non profit scheme developed in 2016 by collaboration between insurance companies and the Government. It aims to make flood insurance more affordable for homeowners living in flood risk areas, whilst helping tenants to find affordable contents insurance. It also allows insurers to offer an affordable range of appropriate policies to their customers.

It is worth noting that Flood Re is designed to offer help for residential homes and cannot be provided to owners of businesses or leasehold flats in blocks of four units or more.


How does it work?

To be eligible for Flood Re, your home must have been built before 1st January 2009, have a Council Tax band, and be insured by you as the individual homeowner through an insurer that participates in the scheme. Flood Re has increased the number of insurance companies able to offer affordable flood insurance, making it easier to shop around and find the best deal for you. See below for a list of participating insurers.

For you as the homeowner, Flood Re works so that insurance can be obtained as usual, with all purchases and claims being handled directly through the insurance company. The scheme uses a central fund that consists of:

  • Premiums on the flood risk aspect of policies paid to Flood Re by the insurer. These are calculated for each policy based on the Council Tax band that the property falls in to.
  • An annual levy paid by all authorised insurers, set at £180 million per year (for the first 5 years of Flood Re). The levy is reimbursed back to the insurers for any valid claims made, and paid out to the customer.


How are the costs capped?

The insurance company cannot increase your flood excess by more than £250, as offered by Flood Re.

To keep costs fair, the flood risk premiums are dependent on the Council Tax band of your home and these should not increase the overall premium by more than the values shown in the table below.

 Council Tax Band



The Flood Re scheme will be in operation until 2039, giving time for the Government, Flood Re, insurers and homeowners to reduce the impact of flooding in order to make affordable flood insurance available in the future, after which time flood insurance will return to the free market. Visit their website to find out more or to see if you are eligible.



Who can insure you?

  • Admiral
  • Ageas
  • AIG
  • Allianz
  • Avantia (HomeProtect)
  • Aviva Home Insurance
  • Axa
  • Bank of Scotland
  • Barclays
  • British Gas
  • Chelsea Building Society
  • Cherish Insurance Brokers
  • Churchill
  • Clydesdale Bank
  • Direct Line
  • Esure
  • First Direct Home Insurance
  • Halifax
  • Haven Insurance
  • Hiscox Insurance
  • HSBC Home Insurance
  • Inet3
  • Leek United Building Society
  • Legal & General
  • Lloyd & Whyte
  • LV=
  • Lloyds Bank
  • Marks & Spencer Bank
  • More Than
  • MS Amlin
  • Nationwide
  • Natwest
  • NFU Mutual
  • Norwich & Peterborough Building Society
  • Nottingham Building Society
  • Oak Underwriting
  • Ocaso
  • Policy Expert
  • Privilege
  • RBS
  • Sainsbury’s Bank
  • Santander Home Insurance
  • Sheilas’ Wheels
  • Swiftcover
  • The West Brom
  • Yorkshire Bank
  • Yorkshire Building Society

The list of participating insurers is updated regularly, the most up to date list is available on the Flood Re website.



Click here to download our 'Flood Insurance' inforgraphic

Flood Insurance Flood Re 2016 17

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