Flood Re premiums cut by up to £112 from New Year’s Day
Scheme anticipates that households in flood-prone parts of the country may pay significantly less for home insurance from January 2019
From 1 January 2019, the Flood Re reinsurance premiums charged to insurers will be cut by up to £112. The decision is anticipated to reduce the costs of home insurance for people most at risk of flooding in the UK.
Premiums charged by Flood Re to insurers are set based on Council Tax bands, and from the start of 2019 they will be reduced by 12.5% for buildings and 33% for contents. This will mean a reduction of between £44 and £112 for a combined buildings and contents policy.
Flood Re announced its intention to cut premiums in October and the reductions will come into effect from January 1st. While the end-price charged to consumers is decided by individual insurers, Flood Re’s analysis anticipates these cuts will result in reduced prices for consumers.
This reduction follows Flood Re’s decision not to increase premiums in line with inflation in 2018.
Andy Bord, Chief Executive of Flood Re, said:
“Our purpose is to make home insurance both more affordable and more available for those people living in high flood-risk areas. I am delighted to start the New Year by making home insurance more affordable for those most at risk of flooding.”
“More than 200,000 properties have benefitted from Flood Re since it was launched and these reductions will help even more people to protect their homes and possessions. Our consultation with the insurance industry suggests that these changes could save their customers as much as £112 a year on their home insurance. Householders should always shop around to get the right deal for them.”