Insurance for at risk properties

Properties at risk of flooding can find it difficult to find affordable home insurance that doesn’t penalise the homeowner in the event of future flooding. Large excesses for flood damage or complete exclusions were the norm for the insurance industry who sought to minimise their exposure to risk.

At a recent Scottish Flood Forum networking event in Perth, the attendees were delivered a presentation on flood insurance from a FloodRe representative, a new organisation set-up in collaboration with the insurance industry and government.

In short, this organisation is tasked with setting up, managing and promoting the FloodRe Scheme to provide affordable insurance to at risk residential properties. The insurance companies who’ve signed up to the scheme have added a small levy onto every policy that gets paid into the FloodRe funding pot. When a flooding claim is made, the recovery and restoration monies come from the FloodRe pot not the insurance companies reserves.

When you are renewing or taking out a new policy, you simply ask for the insurer to consider the property insurance under the FloodRe scheme.

This is how the scheme works and this webpage on the FloodRe website gives some brief information and a video documents a couple using the scheme to get affordable insurance for a previously flooded property.

The FloodRe scheme will operate at least until 2039.