See if you can benefit from Flood Re
For most flat owners and buy-to-let investors Flood Re is of no value, but there is one exception.
If you own the freehold of a small block of up to three flats and live in one of them yourself, then you are covered under Flood Re, providing the property meets the following criteria:
- Built before January 2009
- Located within the UK
- It is insured as one property held in the name of one person on an individual bases and in the name of one of the representatives
- The freeholder lives in the property
- Domestic Council Tax band A to H
Flood Re was introduced in April 2016 to provide affordable insurance solutions for individual households in areas at high risk of flooding. Apart from the exception above, blocks of flats are excluded from Flood Re because the scheme does not cover commercial premises – and for insurance purposes, blocks of flats are considered commercial property.
So how does Flood Re work for those who do benefit from the scheme?
If an insurer considers a property to be high risk, it can pass the flood insurance part of the policy to Flood Re. To do this, the insurer must pay a premium to Flood Re at a level determined by the property’s Council Tax band.
The premiums charged by Flood Re to insurers are capped based on Council Tax bands, starting at £210 per policy per annum in Bands A and B for a combined policy, rising to £1200 for a Band H home. The breakdown of premium according to Council Tax band is shown below.
Council Tax Band A,B C D E F G H
Buildings policy 132 148 168 199 260 334 800
Contents policy 78 98 108 131 148 206 400
Combined policy 210 246 276 330 408 540 1200
Remember, this is only the flood-related portion of the premium so you’ll need to pay for protection against other risks, such as fire or subsidence.
How to minimise damage caused by flood and what to do if the worst happens
- If you live in a high flood risk area, keep a supply of sandbags in your garden shed or other to block off your doorway during periods of heavy rain, this should help limit the amount of water that enters your property.
- Stay on top of weather reports so you have some advance warning as to when you are likely to be affected.
- Store valuables away from the ground floor. If a flood is forecast take any valuable items upstairs as quickly as you can.
- If you experience damage caused by flood, contact your insurer as soon as possible and let them know what’s happened.
- Take pictures of any damage to your home and its contents as soon as possible as this could provide valuable evidence when you submit a claim.
For more information about FloodRe and to see if you are eligible visit http://www.floodre.co.uk/industry/how-it-works/eligibility/
To find out if you’re at risk of flooding go to www.gov.uk/prepare-for-a-flood