BEING The Property Insurer, I am often asked if Flood Re Insurance actually works and whether it is worth getting a quote from homeowners who have either previously flooded or live in flood risk areas.
The answer is simple. Yes, it is worth getting a quote, especially if you live in a flood risk postcode or have flooded previously. But Flood Re Insurance is not for everyone, it is an option and you may choose a different path.
Flood Re Insurance offers home insurance to most properties. I’ve yet to put through a property that will be declined due to flood risk. On that basis, it is offering an insurance solution to everyone, even the worst hit by flooding in past months or years. That is great news as it is what the Government and Association of British Insurers aimed for.
But – and there always appears to be a but – the flipside is that the policies regularly cost more than traditional flood specialist insurance. Typically we are talking around 30-50% more than a standard flood insurance quote.
Flood Re Insurance has a very real benefit to vindicate the cost though. It offers a low excess in the event of a claim. All of the policies I have quoted upon offer £250 excess as a standard. That is superb for anyone who has flooded recently. To put it into context, the same risks on flood specialist insurance, will have excess of around £2500-£5000. Or worse, they will have flood claims excluded completely.
Having a high excess or flood exclusion makes your home insurance in a flood risk area a lot less effective. The whole idea is you insure against likely perils and risks. Flooding is a major one of them.
So, does Floor Re Insurance work? In my view it does, albeit it at a lift of around 50% of price compared to normal flood insurance. The low excess on offer makes it a valuable insurance policy. So which one should you buy? That will depend on your view of risk. If you live at the top of a hill, have never flooded and are classed as living in a flood postcode risk area, then you will probably accept the high excess because you’re unlikely ever to claim for flooding.
If you live on a floodplain and there are regular flood events, then you will probably want to buy Flood Re Insurance with the low excess.
Visit The Home Insurer now to compare Flood Re Insurance and specialist flood insurance quotes – you can buy immediately if cover is needed.