Flood reinsurance—the Flood Re scheme
Produced in partnership with Groundsure and Burges Salmon
Flood reinsurance—the Flood Re scheme

The following Environment guidance note Produced in partnership with Groundsure and Burges Salmon provides comprehensive and up to date legal information covering:

  • Flood reinsurance—the Flood Re scheme
  • Brexit impact
  • Background to the scheme
  • What is Flood Re?
  • How does Flood Re work?
  • What kind of flooding is covered?
  • Exclusions
  • Leaseholders and Flood Re
  • Commercial property and Flood Re
  • Which insurance policies are covered under the scheme?
  • more

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content.

For further guidance, see Practice Note: Brexit—impact on environmental law and News Analysis: Brexit Bulletin—key updates, research tips and resources.

Background to the scheme

The Association of British Insurers (ABI) and the government had an agreement, known as the Statement of Principles (SoP), in place since 2000.

The SoP provided a commitment from the insurance industry to make flood insurance for domestic properties and small businesses available as part of standard household and small business policies if the flood risk is not significant (generally defined as no worse than a 1 in 75 year annual probability of flooding).

The SoP also committed insurers to continue to offer flood cover to existing domestic and small business customers who were at significant risk (over 1 in 75 year annual probability of flooding). This continuation of cover was on the proviso that the Environment Agency had announced plans to reduce the risk of flooding in that area to below 1 in 75 annual probability within five years as part of their Medium Term Plan.

Insurers