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Charity welcomes easier access to flood
insurance for homeowners in Lancashire
THE National
Flood Forum hopes the new Flood Re insurance scheme will alleviate the stress
and frustration previously caused by the difficulties people in high flood risk
areas in getting affordable insurance in Lancashire.
As the only charity that focuses solely on flooding, the National Flood Forum
has been working with government and the insurance industry for many years to
get a better deal for homeowners. The state backed initiative is set to launch
on 4 April 2016 and aims to help flood risk households obtain affordable
insurance.
Paul Cobbing, Chief Executive of the National Flood Forum said:-
"Thousands of homeowners and residents currently struggle to get buildings and
contents insurance which creates anxiety, stress and frustration. It is hoped
that Flood Re will be the game changer that enables more people to take out
affordable insurance to protect their homes and provide peace of mind."
It is expected that the vast majority of
insurance providers will sign up to the scheme which should create a more
competitive market for consumers to shop around in.
Paul continued:- "Until now, many people in flood risk areas either
couldn't obtain or afford insurance and insurers haven't been able to offer
affordable policies in flood risk areas, as the number of flooding incidents and
size of claims increased. Through Flood Re, insurers will now be able to change
all that. Flood Re is time limited to 25 years after which flood insurance will
return to the free market. Therefore, it is critically important that we use
this opportunity to radically reduce flood risk to communities across the
country. Our level of ambition needs to increase significantly, with roles for
all parts of society including Government and the insurance industry. It is a
critical time for government and all stakeholders with an interest in flood risk
management to work together to devise and deliver a much more robust,
collaborative and ambitious plan for managing flood risk. Whatever the approach
it must serve to lessen the impact and reduce the huge cost of flooding to
individuals and the public purse."
Flood Re works behind the scenes; people will continue to deal with their
insurance companies in exactly the same way as before. They will not need to
contact Flood Re. To ensure sufficient funds are available, all domestic
property insurers operating in the UK will pay a statutory levy. This will be a
total of £180m across all insurers. In addition, all household insurance
policies will pay a small fee that will be passed to Flood Re. Policy holders
can expect to see the flooding part of their excess capped at £250 and a more
competitive market will drive down policy premiums too.
Paul said:- "We will be keeping a close eye to see how effectively the
scheme performs but we are really hopeful that it will make a big difference to
people's ability to shop around for the best deal for them. However, in order
for the scheme to work most effectively, it is important that people shop
around. We are aware however, that there is still work to be done in other areas
of insurance, particularly around small businesses who are not covered by Flood
Re but who still struggle to find affordable cover. Whilst we fully recognise
this doesn't fall under Flood Re's remit, we will continue to push for changes
to be made so that all those affected by flooding have a fair chance of getting
insurance."
For more information about Flood Re please visit:-
NationalFloodForum.Org.UK
or FloodRe.Co.UK.
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