31 July 2019
Flood Re is a joint industry and government-sponsored scheme to enable those households at highest risk of flooding to be able to have affordable flood cover.
An increase in flooding
The average amount of rainfall has increased 6-8%1 since the 1980s.
- Around one in six or almost 5million UK homes are now said to be at risk of flooding2
- Less than 40% of those homes at significant risk of flooding are aware of the risk3
- The majority of insurance claims result from surface water flooding, not as a result of being located near a river or the sea.
The growing impact of flooding
Flooding can be devastating to any home.
06 September 2018
06 September 2018
Why has Flood Re been set up?
Recent winters have shown that flood continues to be an issue for the UK. Flood Re has been set up to ensure that insurance against floods continues to be available and affordable.
We have worked with many customers over the years both to support them and restore their homes after the devastating effects of being flooded. Methodist Insurance are supporting the Flood Re scheme to represent the homeowners we insure who are at risk of flooding.
How does Flood Re work?
All insurers pay a ‘levy’ into a central fund held by Flood Re.
In addition, insurers can choose to place (or cede) the flood risk part of any home insurance policy with Flood Re. For these policies the premium for the flood element will be based on the property’s Council Tax band and the flood excess will be £250.
The levies and the flood premiums collected by Flood Re will then be used to pay for flood claims on policies sent to them by the insurers.
What does this mean for me?
This makes no difference to the way you buy your home insurance and any claims will continue to be handled by Methodist Insurance as before.
If your home is to be included in the Flood Re scheme, we will contact you ahead of your renewal date with details of your amended premium including the excess of £250 for flood.
Will this affect my premium?
Your premium could be affected if your property is identified by us as being at risk of flooding.
How do Methodist Insurance identify if my property as at risk of flooding?
We have invested in flood mapping software tools that enable us to look at properties on an individual basis and provide bespoke underwriting.
Do all insurers use the same data when interpreting which areas are likely to flood?
No, insurers do not all use the same data sources. The information each insurer uses is commercially sensitive and you may find that insurers will differ in their approach.
Where can I go for more information about Flood Re?
For more information about how Flood Re works and the benefits visit the Flood Re website.
You can also find information about flood prevention and protection in the risk management section of our website.