The Government and the Association of British Insurers have reached an agreement in respect of flood cover for policyholders in high risk areas. The new deal will see the creation of a new ‘not for profit’ scheme called Flood Re. Insurers will be paying £180M into this organisation, which they are likely to recoup from their policyholders by a £10.00 increase on household policies.
The new scheme will offer huge relief to homeowners in high risk flood areas as the flood element of their premium will be capped in relation to their council tax band. Properties in bands A & B will have their flood premiums capped at £210 per annum whilst the highest band G is capped at £540.
The deal was stuck after the Government agreed to pay £340M into projects to bolster much needed flood defences in high risk areas.
Although we welcome this news arranging flood cover in some areas can still be a challenge. Macbeth Insurance Brokers work closely with various high net worth insurers who generally offer a more flexible attitude to some high value homes in a flood area.
For further information on high value home insurance in flood affected areas contact Carl Sharp on 0118 9165487 or complete one of our enquiry forms.