View more on these topics

More than 350,000 homes gain from Flood Re launch

Flood-Flooded-Homes-700.jpg

The Association of British Insurers says that more than 350,000 UK homes will benefit from the Flood Re scheme, which launched today.

Flood Re is a not-for-profit reinsurer designed to cover UK homeowners against the risk of flood damage.

The body will build up a pool of money to cover flood claims. This will come from a levy on home insurance policies and an annual £180m levy on UK home insurers.

When an insurer judges that the flood risk element of a home insurance policy exceeds its risk appetite, that part of the policy is hived off to Flood Re.

Flood Re is managed by the insurance industry, with the Treasury as the ultimate backstop.

ABI director of general insurance policy James Dalton says: “People in flood risk areas not being able to access affordable cover was a major concern, and why the insurance industry went to great lengths to design and create this world-first solution along with government.”

Flood Re will be in place for 25 years and is designed to ensure affordable flood insurance on the open market.

More than half of the home insurance market has signed up to Flood Re already, with more to come.

Before Flood Re, flood insurance could be too expensive for many homeowners due to insurers charging a premium for assuming the high cost of flooding.

Recommended

Paul-Smee-700.jpg

Sinking feeling over flood cover

A not-for-profit scheme – Flood Re – being created is a welcome move that set to protect the best interests of home-owners, in the event of the types of floods we saw across the UK only last month. But flood insurance could be unobtainable for many flood prone households if the types of properties being […]

Richardson_Martin_Leeds-2013-700x450.jpg

Leeds loosens interest-only criteria

Leeds Building Society will now accept sale of property as a repayment method for certain interest-only borrowers. This repayment method is available to those on part and part interest-only mortgages up to 75 per cent LTV. Leeds director of business development Martin Richardson says: “We always try to be responsive to borrowers’ and brokers’ feedback […]

John Heron
1

Paragon tweaks criteria for limited company landlords

Paragon Mortgages is changing its lending criteria for limited company landlords following government tax relief tweaks. The buy-to-let mortgage provider is removing its exclusivity borrowing restriction for limited company landlords. The changes will let Paragon’s limited company landlords deal with other lenders. Paragon director of mortgages John Heron says: “We know from our latest research […]

Scotland-Scottish-Flag-700.jpg

Aldermore starts offering bridging loans in Scotland

Aldermore has started offering bridging and development products in Scotland. Previously, the lender offered just residential, buy-to-let and commercial mortgages north of the border. Aldermore group managing director of mortgages Charles Haresnape says: “We’re delighted to offer bridging and property development in Scotland at a time when the housing market north of the border is […]

Newsletter

News and expert analysis straight to your inbox

Sign up