Common FAQs

  • 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 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.

  • 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 2019/20 inward reinsurance premiums for properties ceded to the Flood Re scheme, which from 1st January 2019 were reduced for the majority of bands:

      Tax
    band
    England & Scotland A   B C D E F G H
      Wales A  B  C D E F G H I
      N. Ireland 1   2 3 4 5 6 7 8
      Combined 169 169 197 221 265 331 436 1218
      Buildings 117 117 131 148 176 231 296 812
      Contents 52 52 66 73 89 100 140 406

    *Premiums are Net

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