What is the difference between tax, levy and duty
A tax is a financial charge on individuals or businesses collected by the Government. It’s used to pay for public spending. A duty is a type of tax that’s charged specifically on the value of goods and services, such as VAT. A levy is an obligatory payment to the Government or another organisation.
Why can’t I get access to the Flood Re Scheme?
It may be because your property isn’t eligible. Our Flood Re tool may help you to see if this is the case. Ultimately though, the decision to make use of the Flood Re Scheme for your policy remains with your insurance provider. Please contact your insurer if you have more questions about this.
How are the premiums set for ceded policies to the scheme?
The Premiums charged by Flood Re to insurers vary by the Council Tax band of the property. Flood claims on the ceded policy come with a fixed excess of £250 per claim. The table below provides details of the 2023/24 inward reinsurance premiums for properties ceded to the Flood Re scheme:
England A B C D E F G H Scotland A B C D E F G H Wales A B C D E F G H I Northern Ireland 1 2 3 4 5 6 7 8 Buildings Policy 120 120 135 153 181 238 306 839 Contents Policy 53 53 68 75 92 103 144 419 Combined Policy 173 173 203 228 273 341 450 1,258
*Premiums are Net
The table below provides details of the 2024/25 inward reinsurance premiums for properties ceded to the Flood Re scheme:
England A B C D E F G H Scotland A B C D E F G H Wales A B C D E F G H I Northern Ireland 1 2 3 4 5 6 7 8 Buildings Policy 126 126 141 160 190 249 321 880 Contents Policy 55 55 71 78 96 108 151 439 Combined Policy 181 181 212 238 286 357 472 1,319
*Premiums are Net
How is Flood Re funded?
Our funding comes from three sources – a Levy, a premium and an excess – all of which are paid by insurers.
Every year, we collect a Levy from insurers offering home insurance in the UK. In total that provides £135m every year for us to use for administering the Scheme and reimbursing insurers for valid claims.
Then, when we accept a flood risk, we also charge the insurer a fixed premium. That amount is tied to your home’s council tax band, not the actual flood risk. This helps to keep the overall price of the policy down. There’s a limited excess of £250 for each policy, as well.