Unsure about what Flood Re is, or how it will work? Here's a fact sheet of all you need to know.
- WHAT IS FLOOD RE?
The scheme aims to give people more affordable insurance cover and a wider choice of policies.
It should mean households can still find insurance with affordable premiums and excesses - even after a flood claim.
Flood Re works with existing insurance companies. Home owners do not need to deal with the scheme directly. Flood Re does not set prices - this remains a decision for insurers to make.
- WHO WILL IT HELP?
Only people who live in flood-risk areas will benefit - but even that will be dictated by how much they pa for the flooding part of their home insurance.
It will help people who buy the buildings or contents insurance for properties which are at risk of flooding, proving they can own and live in them.
- HOW DOES THE SCHEME WORK?
The insurance industry paid more than £20 million to set up Flood Re - the pool of money to cover claims made will come from money paid by those covered, as well as a £180 million levy on home insurers across the country.
Flood Re, which has been authorised by regulators, also has its own reinsurance policy in place to ensure it can cope with significant or multiple floods.
- WHICH INSURERS ARE ON BOARD?
So far more than 50 per cent of home insurers are represented, with more expected to come on board.
Those on the list so far include Admiral, Aviva, Churchill and Direct Line.