⚠️ Senior Editor's Note: The "Flood Re" scheme is a joint initiative between the UK Government and insurers designed to secure affordable cover for flood-prone homes until 2039. Crucially, it only applies to residential properties built before 1 January 2009. If your home was built after this date, you are excluded from the scheme.
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| Live Near a River? |
Living strictly by the water is a dream. The view of the river, the gentle sound of the stream... until the moment you attempt to renew your home insurance.
Suddenly, the quote jumps from a manageable £350 to a staggering £2,500. Or worse, the insurer bluntly states: "Sorry, we cannot offer you cover due to high flood risk."
In the UK, thousands of homeowners face this annual anxiety. But there is a safeguard mechanism that many brokers fail to highlight. It is called Flood Re.
It is not a specific insurance company. It is a not-for-profit reinsurance fund that effectively forces insurers to offer you a competitive price, even if your house is practically underwater every winter.
What is Flood Re?
Flood Re was launched to prevent high-risk properties from becoming uninsurable "ghost homes." Here is the mechanism:
- You buy a policy: You approach a standard insurer (like Aviva, Admiral, or Direct Line).
- They pass the risk: If the insurer deems your home too risky, they accept you as a customer, but they pass the "flood risk" portion of the policy to the Flood Re fund.
- Capped Price: The premium the insurer pays to cover this flood risk is capped based on your Council Tax Band, keeping your final bill reasonable.
The Price Cap: How Much Will You Pay?
Under Flood Re, the cost of the flood portion of your premium is fixed. As of 2026 (adjusted for recent inflation), the maximum an insurer is charged for the flood element is approximately:
| Council Tax Band | Est. Max Flood Premium (2026) |
|---|---|
| Band A / B | ~£260 |
| Band C | ~£310 |
| Band D | ~£350 |
| Band H (Highest) | ~£700 (Max) |
This means even if you are in a Band D house that flooded last year, the flood risk component of your premium is stabilized around £350, not £2,000. (Note: You still pay for fire, theft, and admin costs on top, but the "flood penalty" is neutralized).
The "2009" Rule: Are You Eligible?
There is one massive catch. Not every house qualifies.
Flood Re is designed to protect legacy housing stock. It does NOT apply to homes built after 1 January 2009.
The logic is simple: The government believes that developers should not have built houses on floodplains after 2009 knowing the risks. If you bought a new build near a river, you are unfortunately excluded and must seek specialist "Non-Standard" insurance.
Does It Cover the Excess?
Yes. Often, high-risk policies demand a huge "Flood Excess" (e.g., you pay the first £5,000 or £10,000 of any claim). Under Flood Re, the standard excess is capped at £250.
Furthermore, thanks to the "Build Back Better" initiative, many participating insurers now offer up to £10,000 extra after a claim to install flood resilience measures (like flood doors or higher sockets), rather than just repairing the damage.
Chief Editor’s Verdict
If an insurer quotes you an astronomical price, they likely aren't utilizing Flood Re. They are essentially pricing you out to avoid the paperwork.
Your Action Plan
1. Verify your house was built before 2009.
2. Find an insurer that actively participates in Flood Re (most major UK brands do).
3. Specifically ask: "Is this quote utilizing the Flood Re scheme?"
Don't let the river wash away your savings. Use the government-backed support that is rightfully yours.
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