Flood Re slashes re-insurance premiums for 2019

16th January, 2019

Householders in some of the most flood prone areas of the UK can look forward to more affordable cover in 2019 as Flood Re slashes re-insurance premiums.

The news follows Food Re’s decision late last year not to increase premiums in line with inflation.

A joint initiative between the Government and insurers, Flood Re was formed to help make flood cover more available and affordable for those living in a high-risk flood zone and encourage those who thought they couldn’t afford flood insurance. Since it’s launch in April 2016, more than 200,000 properties have used the re-insurer’s policies.

Andy Borg, Chief Executive at Flood Re, explains: “Our purpose is to make home insurance both more affordable and more available for those people living in high flood-risk areas.”

While the end price will ultimately be decided by individual insurers, Flood Re anticipates the cuts will result in reduced prices for consumers, with households in flood-prone areas paying significantly less for home insurance.

Premiums are based on Council Tax bands and, from 1st January 2019, will be substantially reduced: buildings by 12.5% and contents by33%. In monetary terms, this could mean a reduction of between £44 and £112 for a combined buildings and contents policy.

Borg adds: “Our consultation with the insurance industry suggests that these changes could save customers as much as £112 on home insurance. Householders should always shop around to get the right deal for them.”

As a local broker, operating within the Long Eaton, Nottinghamshire and Derbyshire areas, Routen Chaplin arranges household insurance policies for many customers in the vicinity and can advise on arranging flood cover for your property, securing a competitive premium

Read more about reducing flooding here. Or, to find out more about our Flood Insurance, please click here.

To discuss your Flood Insurance requirements, speak to a member of the team on 0115 973 4437 or email insurance@routenchaplin.co.uk.

Sources:
Flood Re
Insurance Times