Newly released data shows that since the introduction of Flood Re one year ago – a world flagship programme developed to provide at risk UK homeowners with more accessible and affordable flood cover – 80% of homeowners with previous flood claims saw a 50% price reduction for available quotes.
The scheme has grown from 16 insurers at launch to 60 – enabling homeowners access and choice to the equivalent of 90% of the UK home insurance market.
Mark Hoban, Chairman of Flood Re, said; “Flood Re has changed the insurance market so that tens of thousands of households that have been flooded can access more affordable insurance. We are proud that this scheme has been able to help people whose lives have been devastated by flooding. Householders should speak to their current insurer to see if it has signed up to Flood Re and be prepared to shop around to ensure they getting the best possible deal for them.”
Before the launch of Flood Re, only 9% of households who had made flood claims could get quotes from two or more insurers, this figure has risen to 58% of households with claims having access to ten or more quotes.
Sue Morris from Sedgeberrow, Worcestershire, offers one such example of how homeowners have benefitted from lower premiums – thanks to Flood Re she saw a premium reduction from £1,000 to £400 (60%) and dramatically reduced excess from £10,000 to £250 (97.5%).
Flood Re said thousands of consumers like Morris have benefitted from the excess level set by the programme at £250.
Sue Morris said; “The flooding of the Isbourne in July 2007 was the worst in living memory…It was a very frightening time for a lot of people because not only had we suffered all the heartbreak of losing one’s home, then you had the financial kick.
“What I wanted the Flood Re people to be aware of was what a huge difference this was making on the community in this village. Not only have insurance rates dropped from the thousands to the hundreds, one of the factors that was stopping people from buying was that no one would insure them. Flood Re has taken that problem away.”
The figures from the research into the scheme’s impact are a tribute to the success of the world premier project – for consumers, Flood Re’s meant more affordable and efficient flood cover, enabling quick recovery from natural disasters, and for re/insurers, it translates into a growing market with improved insurance penetration.