Today the Government announced a new long-term plan to tackle the risks of flooding, aimed at providing better protection for 336,000 properties by 2027.
The announcement is largely a discourse on the £5.2 billion committed in March’s Budget but also includes significant changes to Flood Re. Though still subject to consultation, these alterations are aimed at improving the efficiency and effectiveness of the Scheme and are largely in line with those set out in Flood Re’s Quinquennial Review. These include:
- Allowing the Flood Re to offer discounted premiums to homes that have fitted property flood resilience (PFR) measures, such as airbrick covers or non-return valves;
- Allowing the payment of claims to include an additional amount to repair homes in a more flood resilient way – what BIBA has called Build Back Better;
- Exploring whether Flood Re can do more to accelerate the uptake of property flood resilience such as contributing part of the scheme’s currently available funding;
- Working with Flood Re and the insurance industry to explore whether it would be beneficial for insurers to share more information with customers about their flood risk, in order to encourage all parties to take responsibility for uptake of resilience measures.
Technical changes will also be made to the Flood Re Scheme to allow it to amend the level of the annual levy raised from insurers and the maximum it is liable to pay out each financial year, in order to deliver better value for money.
BIBA’s 2020 Manifesto called for promotion of new standards in flood resilience measures that would help insurer to build back better. It has also long campaigned for better access to Flood Re. We will ensure we do all we can to ensure these changes are effected.
Read BIBA’s May 2020 response to EFRA’scall for evidence on flooding here.