Flood RE has been designed to provide cover for up to 350,000 homes which are based on flood-prone areas, offering them a choice of providers and ultimately helping drive down premiums.
Providers such as Admiral, Aviva, Churchill, Direct Line, LV and More Than have all signed up for the scheme, which is great news for landlords as well as home owners, as cheaper running costs on a property may make it a more attractive prospect for tenants.
It is estimated that fully drying out and restoring a flooded property can cost between £20,000 and £45,000, so buying insurance for properties that are located in areas of a high flood risk has historically carried a much higher premium. For anyone working to a tight budget, this could be a premium that they have been unwilling to pay. The new initiative removes the flood-risk element of insurance for an insurer, and such keeps the cost of the policy down – it is funded by an annual levy on insurers.
As well as better insurance availability, the Government also allocated £4.1b in the National Infrastructure Delivery Plan over the next five years to help better reinforce some of the worst affected areas of the country, by investing in better flood defence systems and coastal erosion schemes. Major projects in Oxford, Lincolnshire, London, Lancashire and Yorkshire are planned.
This effort, combined with more affordable insurance affordable to all, should help ensure that if we are hit with the very worst Mother Nature can throw at us, as home owner, landlords, or businesses, we should be better prepared to handle it.
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