Flood Re, the insurance facility being established to offer cover for victims of flooding or those in high risk areas is causing a torrent of problems. Flood Re is an agreement between insurers and Her Majesty’s Government for a flood insurance fund to provide cover for previous victims of flooding and those that cannot obtain flood insurance cover.
Flood insurance for landlords
The current hurdle is that proposals exclude rented property, housing association homes and leasehold homes. Flood water doesn’t discriminate between owner occupied houses and leasehold property or rented accommodation so this is yet another bridge to cross for those putting together the facility.
No Flood insurance for leaseholders
As it is, the plan will potentially leave millions of UK owners of leasehold property without any hope of obtaining adequate insurance cover, leaving them in deep water – completely the opposite of the initial intentions of Flood Re.
It is an astonishing fact that 21% of new homes built in London since 2010 are in high risk flood areas. Flood Re would not be able to provide flood cover for these high risk properties as they are built after 2009 and therefore excluded from the protection of Flood Re.
Obviously this can’t be the end of this story, so we’ll provide more information as we have it.