Feb 2, 2020

Call for UK flood insurance scheme to be extended

One of the UK's most senior insurance executives has called for Flood Re, the national flood insurance scheme, to be extended to cover more homes. Y Bord, chief executive of the company, said: "When Flood Re was created, the government and insurers agreed that the scheme would not cover properties built after 1 January 2009 to avoid incentivising the building of new homes in areas at risk of flooding." Flood Re says that it has cut insurance costs and increased choice for people in flood zones since it was set up, although the amount it has had to pay out in claims has been limited because there have been relatively few large floods in the past few years. Mary Dhonau, who campaigns for better flood preparation, is sceptical about extending Flood Re. "I cannot see that incentivising building on flood plains is the right thing to do," she said. Flood Re is funded by a £180m levy on insurance companies, which is used to subsidise the cost of cover for people in flood-prone areas.

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