The National Flood Forum is warning that tens of thousands of households across the UK could be left unable to secure affordable flood insurance unless urgent action is taken ahead of the planned end of the Flood Re scheme.
Flood Re, a joint government-industry reinsurance scheme, is due to close in 2039. Flood Re has an explicit aim of transitioning households at high flood risk back into the open insurance market. While the scheme has helped stabilise premiums for many existing homeowners, the National Flood Forum says there is still no credible or transparent plan for how that transition will work in practice.
Tessa Munt MP for Wells and Mendip Hills and Chair of the All-Party Parliamentary Group for Flooding and Flooded Communities, said:
“Flooding is one of the biggest risks facing the UK. The constant rain that we have witnessed this winter demonstrates that climate change is real and here now. We cannot wait any longer. Government needs to think about the impacts of Flood Re closing now and make sound decisions around flooding for the future.”
Tracey Garrett, CEO, National Flood Forum, said:
“We are deeply concerned that the end of Flood Re is being treated as a distant problem, when the conditions for a smooth transition do not exist. Mortgages granted today already long outlive the life of the Flood Re scheme. Climate change is increasing flood risk, not reducing it, and many households are already being excluded from affordable insurance during the cost-of-living crisis.”
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The National Flood Forum regularly hears from people who cannot access Flood Re, including residents of homes built after 2009, people living in flats, small landlords, and communities hit repeatedly by flooding. These households often face unaffordable premiums, extremely high excesses, or do not qualify for Flood Re under the exceptions.
“Without a clear successor, we run the risk of returning to a world of sky-high premiums and unaffordable excesses, negating all the good work that has been done by the Flood Re Scheme.”
The National Flood Forum is calling for:
- A clear roadmap for the transition beyond Flood Re
- Detail on how flood risk reduction and property-level resilience will be properly funded by Government and recognised by insurers
- How excluded groups will be protected and supported
“Flood insurance is not a luxury. If the safety net is removed without a viable alternative, the consequences will be felt by households, lenders, local authorities and the wider economy. The National Flood Forum is urging ministers to treat the future of flood insurance as a core part of the UK’s resilience planning and to engage meaningfully with flood-affected communities well before Flood Re reaches its end."
[Main image credit: Frodo's Dad / shutterstock.com]